New Forests Launches A$1 Billion Global Natural Capital Fund

Nature-based real assets-focused investment manager New Forests announced today the launch of its Global Landscape Opportunities (GLO) strategy, the firm’s first global natural capital fund, aimed at investing across forestry, agriculture, and complementary markets such as carbon and biodiversity.

The firm is seeking to raise A$1 billion (USD$707 million) for the new fund, according to media reports.

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Founded in 2005, Sydney-based New Forests manages institutional investment funds in natural capital and nature-based real assets such as forests, agricultural land, carbon projects, conservation areas, and related infrastructure.

According to the company, the new fund is designed to provide institutional investors with access to a globally diversified portfolio of natural capital assets, reflecting growing demand for investment strategies that can deliver long-term returns alongside environmental benefits.

Mark Rogers, Chief Executive Officer at New Forests, said:

“We are seeing strong investor demand for scalable, institutional strategies that provide diversified exposure to natural capital… Natural capital is increasingly recognised as a core component of resilient portfolios, offering the potential for long-term returns while supporting critical outcomes such as climate stability, biodiversity and sustainable land use.”

According to New Forests, the fund will provide investors with exposure to a single, globally integrated portfolio targeting natural capital investment opportunities. Under the proposed asset allocation, 60% to 80% of the portfolio will be invested in developed markets including the U.S., Canada, Europe, the UK, Australia and New Zealand; up to 30% in developed Latin American markets such as Brazil, Uruguay and Chile; and, a maximum of 20% in Southeast Asia, other Latin American regions and Africa.

The company said that the GLO strategy will invest across a broad spectrum of natural capital assets, including sustainable forestry assets, agricultural land and food production systems, carbon and climate-related investments, and biodiversity and ecosystem markets.

The company said that the fund, which is open for institutional investment only, is targeted at pension funds, insurance companies, family offices, endowments and foundations.

David Shelton, Global Head of Investments at New Forests, said:

“Natural capital offers a compelling investment proposition, with characteristics such as attractive long duration return profiles, inflation hedging, and low correlation to traditional asset classes. It also provides exposure to fundamental global demand for food, fibre, renewable energy and ecosystem services.”