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GEF’s Fund II aims for March 2015 first close – exclusive

Global Environment Fund, CDC’s forestry manager, has received interest from a number of continental and north European pension funds.

The African Sustainable Forestry Fund II (ASFF II) is set to announce a first close in March 2015. The fund is targeting $200 million.

Several investors in ASFF I are due to invest in Fund II. The $160 million Fund I was made up entirely of development finance institutions including CDC, IFC, DEG, Proparco, SIFEM and the African Development Bank.

But the fund’s manager Global Environment Fund (GEF) is also speaking to a number of Nordic and European pensions that have expressed an interest. And these conversations are particularly important as some of the returning DFIs have limitations on what they can invest again in a similar region.

“Some of the more attractive investments are in South Africa which represent excellent risk/reward opportunities, however, some of the Developmental Finance Institutions that we have in Fund I have limitations as to how much they want or are able to invest [again],” George McPherson, GEF’s manager director told Agri Investor. “Hence it is important for us to raise the visibility of ASFF II with the pension fund industry.”