- $480M secured: Manulife Forest Climate Fund closes with commitments from institutional and corporate investors.
- Carbon-focused strategy: The fund prioritizes carbon sequestration over timber production, targeting over 6 million tons of CO2 removal.
- Active acquisitions: The fund has acquired over 150,000 acres, with a strong pipeline for 2025.
Manulife Forest Fund
Manulife Investment Management Closes $480M Forest Climate Fund
Key Takeaways:
- $480M secured: Manulife Forest Climate Fund closes with commitments from institutional and corporate investors.
- Carbon-focused strategy: The fund prioritizes carbon sequestration over timber production, targeting over 6 million tons of CO2 removal.
- Active acquisitions: The fund has acquired over 150,000 acres, with a strong pipeline for 2025.
Manulife Investment Management has completed the third and final close of its $480.1 million Manulife Forest Climate Fund, securing investments from U.S. and global institutional investors committed to climate change mitigation.
“We are excited to announce this milestone for the Manulife Forest Climate Fund,” said Tom Sarno, Global Head of Timberland Investments. “Forestland is increasingly recognized as a tool for climate change mitigation, adding new dimensions to timberland investment.”
Climate-First Investment Strategy
The fund is designed to provide investors with a diversified portfolio of sustainably managed forest assets, where carbon sequestration is the primary driver of value. The goal: sequester over 6 million tons of CO2 throughout the fund’s term.
The fund will generate high-quality carbon credits, offering investors the option of in-kind carbon credit distributions or offset sales. It also incorporates afforestation and reforestation efforts to expand its climate impact.
Related Article: Manulife Deepens ESG Focus with Launch of Impact Agenda
Expanding the Portfolio
Manulife has already deployed nearly 50% of the fund, acquiring 150,000+ acres of forestland. Recent acquisitions include:
- Eagle Cap (Oregon/Washington): Generates sustainable cash flow while conserving 1,072 acres through a state-backed land protection initiative.
- Siscowet (Michigan): Held for over a century, this property is positioned for carbon credit generation and selective timber harvesting.
- Oak Bluff (Mississippi/Louisiana/Arkansas): Well-suited for high-quality carbon credit production and diversified income streams.
“Investors are showing confidence in forests as a top natural climate solution,“ said Eric Cooperstrom, Managing Director of Impact Investing at Manulife. “We will continue to pursue opportunities that align with natural climate solutions.”
Private Markets Expansion
Manulife’s $100 billion private markets platform spans infrastructure, real estate, private equity, private credit, timberland, and agriculture. The firm continues to enhance its private market capabilities, offering long-term investment solutions for institutional and retail investors.
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