Key Impact Points:
- Gresham House has closed Forest Fund VI at £375mn / $500mn, marking the UK’s largest forestry fundraise to date.
- The fund is expected to sequester 4.7 million tonnes of CO₂ over 25 years, while targeting a net IRR of 8%.
- Major institutional backers include London CIV, Wales Pension Partnership, and a Japanese investor.
Largest UK Forestry Fund Targets Climate and Financial Returns
Gresham House has announced the final close of Forest Fund VI LP at £375 million / $500 million, making it both the firm’s largest forestry raise and what is believed to be the biggest forestry fundraise in UK history.
Backed by institutional investors such as London CIV, several Wales Pension Partnership member funds, and a Japanese institution, the fund significantly builds on earlier commitments from local government pension schemes and high-net-worth individuals.
Natural Capital with Market-Driven Returns
The Forest Fund VI strategy focuses on acquiring a mix of unplanted land for productive woodland creation and established forests across the UK. Its current portfolio spans 6,000 hectares across 12 sites in Scotland and Wales.
The fund seeks a target net IRR of 8%, with income streams from sustainable timber harvesting, land appreciation, and renewable energy development.
“This milestone fundraise is a clear reflection of the increasing global recognition of European forestry as a compelling asset class,” said Olly Hughes, Managing Director, Forestry at Gresham House.
“UK and European forestry offers a unique combination of natural capital growth and long-term income streams… As the transition to a lower-carbon economy accelerates, demand for sustainably sourced timber continues to rise.”
Climate, Biodiversity, and Local Jobs
Beyond financial performance, Forest Fund VI is expected to sequester 4.7 million tonnes of CO₂ over the next 25 years, with some investor distributions made via carbon credits—usable for offsetting or resale.
The fund’s environmental and economic value also extends to regional impact:
“We are particularly pleased that this Fund includes exposure to forestry assets in Wales which will not only support environmental objectives but also help create rural jobs and sustain local economies,” said Cllr Elwyn Williams, Chair of the Joint Governance Committee for the Wales Pension Partnership.
“Forestry offers the compelling combination of uncorrelated financial returns and measurable environmental benefits.”
Institutional Backing for Scaled Forestry Investment
“We view forestry as a core asset class and a key pillar of our LCIV Nature Based Solutions Fund,” said Vanessa Shia, Head of Private Markets at London CIV. “Gresham House brings the expertise and proven track record needed to manage these assets responsibly and at scale.”
Gresham House currently oversees £3.4 billion in forestry assets, positioning the firm as the UK’s largest forestry manager and the seventh largest natural capital manager globally. Forest Fund VI is a cornerstone of its strategy to deliver climate-aligned, resilient returns.
Related Article: Climate Asset Management’s U.S. Forestry Project Secures Microsoft Deal for 700,000 Long-Term Carbon Credits
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