Investors in Timber Funds

by Hannah Edwards

  • 07 Jun 2011
  • PE

Preqin’s Funds in Market product currently tracks nine timber funds with target sizes ranging from USD 150 million to USD 750 million. Investor Intelligence, which profiles over 4,000 global investors in private equity funds, tracks 100 limited partners that have previously invested in, or expressed a preference for, timber funds.

A number of LPs have recently made commitments to timber funds, including the USD 7.4 billion public pension fund Montana Board of Investments, which made a USD 25 million commitment to RMS Forest Growth Fund III earlier this year. This was its second such commitment, having previously committed USD 50 million to Molpus Woodlands Fund III.

Last month, the USD 40 billion sovereign wealth fund Alaska Permanent Fund Corporation (APFC) asked its general consultant, Callan Associates, to conduct a search for timber managers as it looks to make its maiden commitment to the industry.

Preqin’s Investor Intelligence database shows that of the 100 limited partners that have previously invested in or have a preference for investing in timber funds a significant 82% are based in North America, with 11% based in Europe.  The remaining 7% includes investors from Australia, New Zealand, South America and Africa. Public pension funds represent 44% of these investors, endowments account for 15% of LPs with an interest in timber and 13% are foundations. Other investors that have shown an interest in timber funds include asset managers, banks, government agencies and insurance companies.

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