Stockholm (HedgeNordic) – Finnish asset manager Evli raised €94 million for its fund of forest funds, Evli Impact Forest Fund I, through its final closing this April. Relying on a fund of funds strategy, Evli Impact Forest Fund I enables institutional investors and high net worth individuals to invest in a select group of leading forest funds globally.
“In an era of climate change, the forest fund offers a rare opportunity to do good and enjoy attractive returns at the same time,” says Roger Naylor (pictured), the fund’s portfolio manager. “Forests are a ‘natural climate solution’,” continues the portfolio manager with more than 18 years of experience in forestry investments. “Interest in forestry as an asset class has grown, as forests are seen as a solution for lowering the carbon footprint and reducing the effects of climate change.”
“In an era of climate change, the forest fund offers a rare opportunity to do good and enjoy attractive returns at the same time.”
Evli Impact Forest Fund I has a global focus due to international forestry fund investments offering a higher expected return, with higher forest growth observed in South America and the United States compared to the Nordic region. “Historically, this has also meant a much higher return for the forest,” writes the Evli team in a press release. “In the US, for example, forestry assets have offered a long-term return of over 8 percent per annum.” According to Naylor, “the fund’s investment strategy includes sustainable forest management and the planting of new forests.” The fund can also participate in carbon markets, he adds. “The combination of strategies allows both cash flow and capital appreciation to accrue to the fund’s investment portfolio.”
“The combination of strategies allows both cash flow and capital appreciation to accrue to the fund’s investment portfolio.”
Evli Impact Forest Fund I relies on a fund of funds strategy to invest across a range of large-scale international forest funds. The fund of funds will expand its investment portfolio to include six to seven forestry funds by the end of 2022. So far, Evli Impact Forest Fund I has made a total of three fund investments in the United States and South America.