Timberland Investment Resources Europe has reached the halfway point on its 2020 vintage $200 million fund, managing partner Gian Paolo Potsios confirmed to Agri Investor.
TIR Europe Forestry Fund II has secured $100 million in commitments from a range of investors made up of institutional investors, family offices and endowments. The firm has added two new investors of a similar profile since its $75 million first close in April.
Potsios said fundraising has been positively and negatively impacted by the coronavirus pandemic.
“There has definitely been a renewed interest in the asset class,” he said. “I’ve had several phone calls from investors – there has definitely been a revamp because, after all, there are not many asset classes that are able to give you annual cash returns of around 3-4 per cent and an IRR over time of around 8-10 percent, with a very low risk profile.”
The challenge, said Potsios, is the same one facing GPs everywhere – how to convert fresh interest from new investors into tangible commitments without a face-to-face meeting.
“From an investor’s perspective, before they give you $20, $30 or $40 million for the next 10-15 years, they want to come look at you, kick the tires and look at you in the eye and ascertain whether you’re a nice guy or not. If that personal connection will be more difficult to obtain – how do we get around it?”
The 10-year closed-ended TIR Europe Forestry Fund II has a $250 million hard-cap and will invest exclusively in the US across five-to-six properties with a range of tree species and age groups. Average acquisition values are expected to be in the $30 million-$50 million range.
TIR Europe is the successor to the 2017-vintage fund of the same name, which closed at $130 million and is now fully committed.
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