New Forests Secures AU$600 Million for Its Australia New Zealand Landscapes and Forestry Fund

New Forests, a global investment manager of nature-based real assets and natural capital strategies, announced on Wednesday the final close of the Australia New Zealand Landscapes and Forestry Fund (ANZLAFF), raising approximately AU$600 million from institutional investors from across Europe and Asia-Pacific, including three new investors.

ANZLAFF provides exposure to integrated forest, land, carbon, and agriculture markets in Australia and New Zealand targeting investments in core forestry plantations alongside processing and related infrastructure, with some targeted exposure to agriculture assets.

The Fund aims to maximize the value of the whole landscape by positioning investors to benefit from the best use of the landscape across forestry and agriculture, while combining additional revenue streams such as carbon, biodiversity, and renewable energy such as solar and wind. It will also seek to enhance climate mitigation through carbon sequestration and emissions reduction opportunities across its investments.

Among the new investors in the Fund’s final close are Evli, an investment management business spanning Finland and Sweden; Kyushu Electric Power, a Japanese energy company; and a German insurance company.

The final close comes 12 months after New Forests announced the first close of ANZLAFF with commitments from five investors, including Swedish pension fund Andra AP-fonden (AP2); German pension group Bayerische Versorgungskammer (BVK); the Australian Government’s Clean Energy Finance Corporation (CEFC); along with an Australian and a German insurer.