THE Gresham House Forest Growth & Sustainability Fund has achieved its target commitments total of £300 million – one year ahead of schedule. 

Since its launch in June 2021, the strategy has attracted commitments from a range of institutional investors, including the Scottish National Investment Bank, the Pension Protection Fund, Worcestershire Pension Fund, East Riding Pension Fund, the National Trust, family offices and private investors. 

Gresham House officials say this strong demand for forestry has been driven by a combination of factors, including long-term stable returns, its potential as a diversifier for portfolios as well as its positive environmental impacts which can align with clients’ net-zero objectives. 

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Olly Hughes, managing director, Forestry at Gresham House, said: “This successful final close is a testament to the proven expertise of our forestry team and the long-term performance across a range of return drivers for the asset class. 

"With growing recognition of the benefits forestry can bring to portfolios in terms of returns, diversification, inflation-protection and environmental impacts, the pipeline of opportunities is strong, and we will now be deploying this capital at pace into new planting projects around the UK.” 

The Gresham House Forest Growth & Sustainability LP invests in a combination of new planting land for woodland creation and established sustainable commercial forestry across the UK. Officials say high-quality sustainable opportunities are targeted, generating returns from the sale of timber, the sequestration of carbon (and sale of carbon credits) and the capital growth of the underlying land and trees. 

The capital raised in the final close will be deployed rapidly, with a focus on new productive woodland planting schemes as well as the acquisition of existing woodland for the production of sustainable commercial timber, building on the fund’s existing portfolio of approximately 10,000 hectares spread across around 40 properties. 

Elizabeth Eyre, chair of the Worcestershire County Council pension fund committee, said: “Forestry has proven a valuable diversifier for our portfolio, while also delivering meaningful benefits in terms of reducing emissions."