Earth Capital Partners, a UK-based private equity firm, is raising upwards of $300 million for a new fund that invest in sustainable timber plantations in Brazil and other Latin American countries.
Earth Capital Partners LLP today announced the launch of the ECP Forestry Fund One LP, targeting up to US$300 million of investment. The Fund will invest in timber plantations and certain related assets in Brazil and other Latin American countries.
The fund will have a 10 year maturity and intends to invest in 6-8 projects. The Fund seeks to generate solid non-correlated returns through ownership of productive land and fast growing sustainable timber capitalizing on the region’s unmatched biological conditions, human capital and other cost advantages. The Fund will benefit from ECP’s regional presence and ECP’s management team, which brings regional experience in private equity and plantation operations, led by ECP’s Head of Sustainable Agriculture and Forestry, Bosworth Monck.
The Fund’s expected returns are modeled on revenue from domestic and export markets for fiber, biomass and solid wood. In addition to the commercial return, the fund will also benefit from the strong Sustainable Development attributes of the assets, managed and reported using ECP’s proprietary Earth DividendTM Environment, Social and Governance (ESG) portfolio management and reporting process.
Stanley Fink, Chairman at ECP commented, “The Fund provides a vehicle for institutional investors to engage in forestry and biomass in Brazil and Latin America, which offer attractive returns coupled to strong sustainability benefits. ECP aims to reach a first close for this Fund later in 2010 and a final close in 2011”.
Notes to Editors
ECP LLP will act as the investment advisor to the Fund’s investment manager. Earth Capital Partners LLP (“ECP”) is authorised and regulated by the UK Financial Services Authority. ECP advises funds managed by Earth Capital Partners Guernsey Limited (ECPG). ECPG is an asset manager, licensed by the Guernsey Financial Services Commission and authorised to conduct controlled investment business.
ECP Forestry Fund One LP is authorised under the protection of Investors (Bailiwick of Guernsey) Law, 1987 as amended.