Tropical Asia Forest Fund 2
Last updated 11 May 2020, by Impactyield.
TAFF2 will be a closed-ended fund that will acquire whole or partial stakes in plantation forestry companies in Southeast Asia, with a primary focus on Malaysia, Vietnam, Cambodia, Laos and Indonesia.
TAFF2's strategy to create value is through:
• Application of disciplined forest management strategies to enhance forestry returns by improving genetics, management and cost structures;
• Participation in grant and incentive programs for environmental rehabilitation and conservation, where possible;
• Application of state-of-the-art forest management information systems as part of resource and estate management; and
• Certification of forest management against international standards.
New Forests has developed a strategy with a proven track record in Asia for almost a decade, with sustainability at the heart of our investment strategy.
TAFF’s target returns are 12-14% IRR post-fees, pre-local tax.
Sustainable food production and resilient agricultural practices
Key performance indicators
Asset manager: New Forests Asset Management
Product track record: Fund has 4 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: Cayman Islands
Product status: Open - no committed capital
Inception year: 2018
Vintage year: 2018
Target close date: n.a.
Product term: 10 years
Assets under management: n.a.
Investment size: Min: 0; Max: 0; Avg: 0
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: Fund is not yet open to investors. Will commence fundraising in early 2018.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
New Forests believes its approach to responsible forest management will have multiple commercial, social and environmental benefits in the countries in which it invests. These may include a reduction in net greenhouse gas emissions and other forms of environmental pollution; the maintenance or enhancement of high conservation values and biodiversity; improvements in local livelihoods and safe and healthy working conditions for those living and working on assets or in businesses owned by TAFF2; and recognition of indigenous people's rights, especially for those living adjacent to or within the boundaries of the land and forestry assets controlled, owned or managed by TAFF2. Selective timber harvesting using Reduced Impact Logging techniques, combined with Forest Stewardship Council certification, is now widely advocated as a strategy to conserve the world’s forests and the biodiversity they contain. The benefits to New Forests’ approach for TAFF2 investors include risk reduction, improved commercial performance and access to markets and potential achievement of investors’ sustainability objectives.