Natural Capital

Forestry is an asset class growing in sophistication and a key component of natural capital portfolios.

The majority of the asset will operate as a biodiversity net-gain habitat bank, with the firm calling Carlshead Farm its ‘first biodiversity investment.’

Emmanuel Simon says the continent’s fragmented farm base is a financing challenge, as it looks to the energy sector for lessons on how to support primary production.

Private investment into nature hit $14bn in 2025 after increased diversification within the natural capital asset class.

The half-year take by agri-food and forestry vehicles is down marginally from H1 2025, with agribusiness representing the majority of fundraising.

Pollen Street’s InSoil credit facility and SWEN Terra’s operator-led equity model demonstrate innovation, but the market must prove which capital structures can scale.

The firm will consider candidates with a strong track record of due diligence procedures across asset classes.

The firm’s strategy has an 8,000ha afforestation pipeline, as pension appetite and a £250m government purchase fund suggest domestic timber resilience is becoming a strategic priority.

The Sydney-headquartered firm acquired 91,000 acres of Oklahoma timberland from Rayonier in 2024 and launched a global natural capital fund targeting $750m in mid-June.

Natural capital head Gautier Quéru says the strategy will target agribusinesses supporting bio-based supply chains, with European pensions, insurers and family offices expected to be natural backers.