Timberland Investment Resources Europe (TIR) has held a first close of its TIR Europe Forestry Fund with an initial USD74 million of committed capital.
A diverse, mostly European group of limited partners made initial commitments to the fund, including public and private pension plans, insurance companies and family offices.
TIR has a value oriented approach and will be targeting 8-10 per cent returns with 3 per cent annual distributions.
GianPaolo Potsios (pictured), managing partner, says: “We are excited to be able to offer European institutional investors access to an asset class that is well established amongst US investors in a time where the world economy continues on its uncertain path. Real assets such as timberland have a compelling role to play in an investor’s portfolio given the bond-like characteristics with a solid source of alternative yield.”
Hugh Humfrey, managing partner, adds: “For our new investors we will continue to weight on our over two decades of experience in managing timberland investments and the network created to source the best opportunities whilst pursuing the highest environmental stewardship and expertise in managing the forests. We have our in-house economic and biometric research methodologies to inform and guide our investment decision-making process and remain boots on the ground foresters while assisting our investors achieve their portfolio objectives.”