Stafford Capital Partners has raised over $1bn (€917m) for its latest timberland secondaries investment fund.
The private-markets fund manager said the Stafford International Timberland Fund X (SIT X) fund closed at $1.04bn, surpassing its $1bn target. It also secured co-investment capital, bringing the total raised to more than $1.1bn.
Most of the investors (72%) in SIT X committed capital to its predecessor, SIT IX.
The latest fund attracted 13 institutional investors, with 91% of the capital raised from pension schemes and the rest from an insurance company and an investment trust. Commitments were geographically diverse, with 48% originating from the UK, 23% from Germany, 19% from Korea and 10% from North America.
Stafford said it has already committed over $330m to five investments, covering 27 managed timberland assets, with a land size of 1m hectares, adding that its investment pipeline includes a pending $140m transaction.
Angus Whiteley, CEO of Stafford Capital Partners, said: “Timberland is the bedrock of the emerging natural-capital asset class. As a stable, yielding real asset, it delivers returns to investors whilst positively addressing the long-term climate risk which is present in all asset classes.
“Stafford’s approach to accessing the asset class through secondaries is compelling, accessing assets that otherwise do not come to market and delivering a portfolio that is well diversified by geography, species and age class.”
Stephen Addicott, partner at Stafford Capital Partners, said: “SIT X has been a really successful fundraising for Stafford. Over the course of this fundraising period, we have witnessed the growing consolidation of the asset class as a strategic investment and climate solution for institutional investors.
“The scale of the fund, combined with our experience in complex secondary transactions allows us to offer investors access to well-established, high-quality timberland portfolios while maintaining attractive risk-adjusted returns.”
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