Key Takeaways
- • ABP, the Dutch pension fund, committed €150 million ($168 million) to SLM Partners' second Silva Fund, a European forestry strategy, as part of its target to invest €11 billion in climate and biodiversity by 2030.
- • The Silva Fund II is SLM's strategy for acquiring forestland and applying continuous cover forestry, a management method that harvests a small number of trees every few years.
- • Less than 30% of European forests are managed through continuous cover forestry, which the EU's New Forest Strategy recognizes as a way to protect biodiversity and increase carbon storage.
- • ABP invested through its asset manager APG, and the commitment is described as the first and final close for Silva Fund II.
- • SLM previously raised €50 million for its first Silva Fund in Ireland and €30 million for the Silva Europe Fund covering Spain and Portugal.
Summary
Dutch pension fund ABP is investing €150 million ($168 million) with SLM Partners, the London-based specialist agriculture and forestry real asset manager, according to the original report. The commitment, made through ABP's asset manager APG, is part of ABP's target of investing €11 billion for climate and biodiversity by 2030. Industry reports describe the commitment as the first and final close for SLM Silva Fund II.
The capital goes into the second Silva Fund, SLM's strategy for acquiring forestland and instituting continuous cover forestry. This sustainable management approach involves harvesting a small number of trees every few years so the canopy can regrow. SLM said in a statement that fewer than 30% of European forests are managed this way, though the EU's New Forest Strategy recognizes the method as a means to "protect and restore biodiversity, increase carbon storage and strengthen resilience to climate extremes." The firm also noted that active management can improve timber quality and produce larger, more valuable trees, while natural regeneration can reduce or avoid replanting costs.
SLM's fund platform has grown in stages. The first Silva Fund raised €50 million to implement the strategy in Ireland, and the €30 million Silva Europe Fund extended it to Spain and Portugal. For Silva Fund II, SLM will begin with investments in Ireland before expanding into other markets.
The capital goes into the second Silva Fund, SLM's strategy for acquiring forestland and instituting continuous cover forestry. This sustainable management approach involves harvesting a small number of trees every few years so the canopy can regrow. SLM said in a statement that fewer than 30% of European forests are managed this way, though the EU's New Forest Strategy recognizes the method as a means to "protect and restore biodiversity, increase carbon storage and strengthen resilience to climate extremes." The firm also noted that active management can improve timber quality and produce larger, more valuable trees, while natural regeneration can reduce or avoid replanting costs.
SLM's fund platform has grown in stages. The first Silva Fund raised €50 million to implement the strategy in Ireland, and the €30 million Silva Europe Fund extended it to Spain and Portugal. For Silva Fund II, SLM will begin with investments in Ireland before expanding into other markets.
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