US Carbon Forestry Strategy
United States of America
Last updated 11 May 2020, by Impactyield.
Developed countries (203) / More developed regions (202) / More developed regions (North America, Asia & Oceania) (153) / United States of America (112)
US Carbon Forestry strategy provides the opportunity to acquire timberland assets that can deliver above-market returns in the mature US domestic timberland market. This is achieved by:
(1) acquiring US timberland with high carbon value at pricing consistent with timber-only market value;
(2) developing and monetizing the California carbon offset projects;
(3) implementing additional conservation finance strategies where applicable (such as conservation easement sales); and
(4) managing forests for income from log and carbon sales and timber inventory growth to maximize total returns.
New Forests has a long track record and experience in California forest carbon with Eco Products Fund, the first US fund for mitigation banking and forest carbon, and Forest Carbon Partners, a forest carbon offset project finance investment fund that is one of the leading suppliers of offsets to the California carbon market, with 4.3 million offsets sold as of January 2017.
The US Carbon Forestry strategy seeks to generate up to 8% to 10% real pre-fee, pre expenses, pre-investor tax IRR from US timberland assets. This return is comprised of 5% to 6% real gross IRR from timber-only management, with a combined return of 8% to 10% real gross returns from combined timber, carbon and conservation finance strategies.
MP will invest in assets that are likely to:
• Generate revenues from the sale of mitigation banking credits for compensation of environmental impacts; and
• Have potential to earn additional revenue streams from ancillary activities, such as limited timber harvesting and recreational activities.
The complexity of securing and operating under a regulated environment, combined with the local market characteristics of mitigation banking credit pricing, necessitate a specialized skill set to maximize value from these assets.
New Forests is uniquely positioned to acquire assets at off-market pricing from operators seeking to exit and expand market positions on an opportunistic basis. New Forests will employ rigorous due diligence and acquisition processes, including valuation based on disciplined market and financial metrics. The objective is to add value through improved marketing and sales strategies for mitigation credits, application of rigorous financial analysis, and re-capitalization of underperforming assets. New Forests seeks to provide Fund investors with commercial returns enhanced by positive environmental outcomes.
of track record
the year funded
New Forests Asset Management
Headquarters location: Australia
Other funds managed by this asset manager: Australia New Zealand Forest Fund 3Tropical Asia Forest Fund 2
Sustainable food production and resilient agricultural practices
Key performance indicators
Asset manager: New Forests Asset Management
Product track record: Fund has 7 years of track record
Target IRR: 8%
Committed Capital: 0 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - committed capital
Inception year: 2016
Vintage year: 2016
Target region: Developed countries, More developed regions, More developed regions (North America, Asia & Oceania), United States of America
Target close date: n.a.
Product term: Minimum five year hold period
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: 1
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: Can be provided to interested investors upon request.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: +61 2 9406 4100
If you wish to have your details removed from this database please email email@example.com
Director, Investments & Operations
Executive Director, Investor Services
Associate Director, Investor Relations
New Forests' US Carbon Forestry strategy directly links conservation and production values by managing properties for both carbon and timber. New Forests creates value in these emerging asset classes via extensive intellectual property, policy expertise, and local knowledge.
Some of the ways in which the US Carbon Forestry strategy achieves environmental impact include:
• Appropriate land use and land use planning
• Improving both the biological and economic productivity of timberland
• Creating value for ecosystem services
• Active participation in the California offset protocol as a supplier.
biodiversity conservationcarbonCommunity Investing/Localecosystem productivityOtherrenewable resourcesRural