Manulife Investment Management Closes $480M Forest Climate Fund

What's Happening: Manulife Investment Management has announced the final close of its Manulife Forest Climate Fund LP, raising $480.1 million from a diverse group of investors. The fund aims to promote climate change mitigation through investment in sustainably managed forests, prioritizing carbon sequestration over timber production.

The Key Moves:

• The fund has already acquired over 150,000 acres and is approaching 50% deployment.

• The fund's strategy includes establishing new forests through afforestation or reforestation to generate high-quality carbon credits.

• Investors will have annual optionality for in-kind carbon credit distributions or offset sales.

By The Numbers :

• The fund closed with $480.1 million in commitments.

• The fund aims to sequester over 6 million tons of carbon dioxide over its term.

• Manulife Investment Management manages more than five million acres of timberland globally.

Key Quotes:

• "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," said Tom Sarno, global head of timberland investments.

• "Investors are showing confidence in forests as a top natural climate solution," added Eric Cooperstrom, managing director, impact investing and natural climate solutions.

• "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."

The Bottom Line: Manulife Investment Management's successful close of its Forest Climate Fund demonstrates growing investor interest in natural climate solutions and sustainable forestry. The fund's focus on carbon sequestration and high-quality carbon credits positions it at the intersection of climate change mitigation and timberland investment, potentially offering both environmental and financial returns.

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