Latest forest fund exceeds first close target
Gresham House plc
("Gresham House" or the "Company")
Latest forest fund exceeds first close target
Gresham House is pleased to announce that the Gresham House Forest Growth & Sustainability Fund has held its first close with £127m in subscriptions, substantially exceeding the initial target of £100m. The fundraise includes commitments from two major institutional investors.
In light of a strong deal pipeline and timely deployment, we anticipate a second close for the fund later this year. These fundraising efforts come amid rising forestry valuations and a growing appetite from investors to broaden exposure to ESG-aligned strategies.
Launched in June of this year, the Forest Growth & Sustainability Fund aims to deliver sustainable capital growth through the creation of new productive woodland, whilst providing exposure to existing income-generating forestry in the UK.
The strategy of the fund will target generating returns through the sale of timber and the capital growth of land and trees, while also producing carbon credits from the creation of new woodland. Investors are expected to receive distributions in the form of verified carbon credits that can be retained for 'insetting' purposes - to address carbon emissions in their sphere of influence or portfolio - or sold to provide income.
Managing roughly 140,000 hectares of forestry worth more than £1.8bn, Gresham House is the UK's largest commercial forestry manager. The business also manages a forestry mandate in Ireland and expects to complete on a further international forestry mandate in Australia, subject to regulatory approval.
Olly Hughes, Managing Director, Forestry, Gresham House, says: "This impressive first close is testament to Gresham House's long-standing track record in the forestry space and shows clear and growing appetite for the asset class from institutional and private client investors. This flexible strategy allows investors to choose to use the carbon credits generated for offsetting purposes or sell the units to generate income. As investors increasingly focus on sustainable investments, forestry is emerging as one of the most impactful solutions, which combats climate change and enhances biodiversity, while also serving as an excellent investment diversifier and producing meaningful uncorrelated returns."
Eilidh Mactaggart, Chief Executive Officer of the Scottish National Investment Bank, who are investing in the fund commented: "The Bank is delighted to cornerstone this new sustainable forestry fund focused on new and diverse planting in Scotland. Gresham House is an experienced forestry fund manager, and we are very excited to support them in this new venture. The new planting element and ability to generate carbon credits represents a novel investment proposition which mainstream investors have yet to fully embrace. The Bank's cornerstone investment is designed to encourage other investors to follow us into this new type of forestry fund. We therefore believe this opportunity to be an excellent fit for the Bank's ambition to lead the way on innovative mission aligned investments."
ENDS
About Gresham House Forestry
Gresham House has been managing commercial forestry assets in the UK, Ireland, the Baltics, and New Zealand on behalf of a range of investors, including institutions, family offices, private clients, and funds for over 40 years and currently manages c.140,000 hectares worth over £1.8bn (as at 31 December 2020).
Our team of 30 dedicated forestry professionals have unparalleled experience and depth of resource in all areas of international forestry investing and carbon markets, including Acquisition, Fund & Client Management, and Asset Management (silvicultural experts).
About Gresham House
Gresham House is a specialist alternative asset management group, dedicated to sustainable investments across a range of strategies, with expertise across forestry, housing, infrastructure, renewable energy and battery storage, public and private equity.
Founded in 1857, Gresham House is one of the oldest companies in London, while our focus is on the future and the long term. Quoted on the London Stock Exchange (GHE:LN) we actively manage c.£4.7bn of assets (as at 30 June 2021) on behalf of institutions, family offices, charities and endowments, private individuals, and their advisers. We act responsibly within a culture of empowerment that encourages individual flair and entrepreneurial thinking.
As a signatory to the UN-supported Principles for Responsible Investment (PRI), our vision is to always make a positive social or environmental impact, while delivering on our commitments to shareholders, employees, and investors.
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For more information contact:
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Gresham House plc
Tony Dalwood, Chief Executive Officer Kevin Acton, Chief Financial Officer
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+44 (0)20 3837 6270
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Houston - PR advisors
Alexander Clelland Kay Larsen |
gh@houston.co.uk +44 (0)20 4529 0549
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Canaccord Genuity Limited - Nominated Adviser and Joint Broker
Bobbie Hilliam Georgina McCooke
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+44 (0)20 7523 8000
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Jefferies International Limited - Joint Broker and Financial Adviser
Paul Nicholls Max Jones |
+44 (0)20 7029 8000
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