Manulife Investment Management, a leading timberland investment manager with over five million acres under management, has announced the final close of the Manulife Forest Climate Fund LP, securing $480.1 million in commitments.
Investors include qualified U.S. purchasers, corporations, and global institutional investors seeking to support climate change mitigation through sustainably managed forests that prioritize carbon sequestration over timber production, according to a company statement earlier this week.
The fund aims to provide investors with a diversified portfolio of forest assets where carbon is the primary value driver. It is projected to sequester over six million tons of carbon dioxide (CO2) throughout its term while delivering high-quality carbon credits.
The strategy also includes afforestation and reforestation initiatives to enhance carbon sequestration and sustainable timber value.
“We are excited to announce this milestone for the Manulife Forest Climate Fund and have seen strong interest in the forest climate strategy from a broad base of global investors, further highlighting the acceptance and growing use of forestland as a climate change mitigation tool,” said Tom Sarno, Global Head of Timberland Investments.
Relevant: Manulife Raises $225 Million For Climate-Focused Forest Fund
The fund has acquired over 150,000 acres, with nearly 50% of its capital deployed. Its first acquisition, Eagle Cap in Oregon and Washington, generates cash flow from sustainable forestry and includes a land conservation project in partnership with state agencies.
The second acquisition, Siscowet in Michigan, offers strong potential for carbon credit generation. The most recent acquisition, Oak Bluff, spans Mississippi, Louisiana, and Arkansas, supporting both carbon credit production and sustainable timber income.
“Investors are showing confidence in forests as a top natural climate solution,” said Eric Cooperstrom, Managing Director of Impact Investing and Natural Climate Solutions.
Manulife Investment Management’s $100 billion private markets platform continues to expand, offering innovative investment solutions to institutional and retail investors.
Read more: New Forests Raises $375M For Australia New Zealand Fund
