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Private Equity Timber Fundraising – July 2013

by Kamarl Simpson

  • 01 Jul 2013
  • PE
  • NR

According to Preqin's Funds in Market product there are 11 private equity timber funds currently raising capital. These funds are collectively targeting approximately $3bn in capital commitments. Of the 11 timber funds currently in market, six have held at least one interim close, having raised an aggregate $776mn in capital commitments so far. The average target size for timber funds in market is currently $408mn.

Of all the funds currently in market, six primarily focus on North America, collectively targeting almost $1.4bn and representing 47% of the total capital targeted. Three timber funds aiming to raise an aggregate $1.3bn are targeting investment opportunities outside of North America, Europe and Asia.

The largest Timber fund currently in market is Australia New Zealand Forest Fund 2 managed by New Forests. The fund, which is seeking AUD 800mn, held a first close in June 2013 with commitments totalling AUD 570mn. Australia New Zealand Forest Fund 2 invests in forestry and environmental assets in Australia and New Zealand.

The second largest timber fund in market by capital sought is Brookfield Timberlands Fund V. The fund managed by Brookfield Asset Management is targeting an aggregate $750mn for investment in timberland assets, primarily in the US, Brazil and Australia, but will also target opportunities in Canada, Chile, New Zealand and Uruguay.

The only timber private equity fund to have held a final close so far in 2013 is Brookfield Brazil Timber Fund II. The fund focuses on timber investment in Brazil and closed above its $200mn target having raised a total of $270mn in capital commitments.

In 2012, only three timber funds reached a final close having raised an aggregate $500mn in investor capital. Timber fundraising reached a peak in 2008, with five vehicles reaching a final close, having raised $2.9bn in commitments.

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