Manulife Financial’s global wealth and asset management business Manulife Investment Management announced that it has raised $480 million in commitments at the final close of its Manulife Forest Climate Fund LP, focused on investing in sustainably managed forests, with carbon as the primary value driver.
Launched in late 2022, and aimed at providing investors with the opportunity to invest in nature and climate change mitigation and delivering value through carbon credits, the fund invests in a globally diversified portfolio of sustainably managed forestland assets, where carbon sequestration is prioritized over timber production.
The strategy also includes the establishment of new forests through afforestation or reforestation to generate high-quality carbon credits and long-term sustainable timber value.
Tom Sarno, Global Head of Timberland Investments at Manulife Investment Management, said:
“We are excited to announce this milestone for the Manulife Forest Climate Fund and have seen strong interest in the forest climate strategy from a broad base of global investors, further highlighting the acceptance and growing use of forestland as a climate change mitigation tool that has added new dimensions to timberland investment.”
According to Manulife, the fund aims to sequester more than 6 million tons of carbon dioxide, with goals to maximize total return while preserving capital, provide moderate current income, and to realize profit from carbon value and long-term appreciation.
To date, the fund is approaching 50% deployment, and has acquired more than 150,000 acres, with a pipeline of additional opportunities in 2025 identified to continue to grow and diversify the portfolio.
Eric Cooperstrom, Managing Director, Impact Investing and Natural Climate Solutions at Manulife Investment Management, said:
“Investors are showing confidence in forests as a top natural climate solution. With the interest we have seen in the fund, we will continue to pursue natural climate solutions to drive new opportunities for impact and results for our clients.”
