Timberland Investment Resources Europe (TIR) has held a first close of its TIR Europe Forestry Fund, with an initial $74m (€66m) raised.

The company said a diverse but mostly European group of limited partners made initial commitments to the fund, including public and private pension plans, insurance companies and family offices.
TIR is targeting returns of 8-10%, with 3% annual distributions.
GianPaolo Potsios, managing partner, said the asset class was “well established” among US investors at a time where the world economy “continues on its uncertain path”.

“Real assets such as timberland have a compelling role to play in an investor’s portfolio given the bond-like characteristics with a solid source of alternative yield,” he said.