A Korean pension fund has invested $200m into a timberland fund managed by Stafford Capital Partners.
The SIT X timberland fund was launched in January 2023, with a £1bn fundraising target. This latest investment brings total commitments to $635m.
Stafford told Net Zero Investor that it cannot disclose the name of the Korean pension fund; however, stated that the investment is accompanied by a further $100m co-investment sidecar vehicle.
It is understood that other investors in the fund include those from the US, Germany and the UK, including Local Government Pension Scheme (LGPS) funds.
In 2021, Stafford revealed that the National Pension Service of Korea (“NPS”) was among the investors in its timberland strategy.
Both £5.7bn Leicestershire and £9.6bn Essex LGPS funds have invested in timberland through various funds managed by Stafford Capital Partners, with one being Stafford Capital Carbon Offset Opportunity Fund.
According to the manager, the SIT X timberland fund has already deployed over $160m of capital.
Angus Whiteley, Stafford Capital Partners’ CEO, said: “With investor focus on the carbon sequestration potential of commercial timber growing, we expect interest in this asset class to only accelerate, providing a significant potential first mover advantage for institutional investors who are looking at timberland now as part of their alternatives strategy."
This comes as several UK pension funds have confirmed timberland investments over the past two years.
The Scottish Borders Pension Fund, a £900m LGPS fund, confirmed its first natural capital allocation with an initial investment in Nuveen’s flagship Global Timberland strategy in January.
While DC master trust, Nest, which now manages £39bn of assets, confirmed that it is looking for one or more timberland fund managers at the end of last year.
