Mitsui, Nomura acquire real assets manager New Forests

Mitsui, which has been a shareholder in the firm since 2016, will increase its interest from 23% to 49%, while Nomura will take 10%. The remaining 10% will be allocated to New Forests management, enabling a continuation of ownership, albeit in a minority capacity. David Brand, the founder, CEO, and chairman of the firm, will remain through mid-2025.

Founded in 2005, New Forests has AUD 7.8bn (USD 5.8bn) in assets under management across timber plantations and conservation areas, carbon and conservation finance projects, agriculture, timber processing, and infrastructure. It is responsible for 1.1m hectares of forests, rural land, and conservation investments.

Classified as a B Corporation – a certification awarded to for-profit companies that meet third-party vetted standards in areas such as social sustainability, environmental performance, and transparency – the firm has operations in Australia, New Zealand, Southeast Asia, Africa, and the US. There are 100 staff.

Past fundraising activity includes closing Australia New Zealand Forest Fund 3 in 2017 on AUD 873m. The firm raised AUD 490m for Fund I in 2010 and AUD 707m for Fund II in 2014. In 2008, New Forests established the first Southeast Asia-focused institutional forestry fund. Three years later, it launched Forest Carbon Partners, a vehicle designed to supply forest carbon offsets in California.

Brand’s career tracks that of sustainable investment. In the 1980s, he calculated carbon budgets for red pine forests in Canada. In 1999, following the Kyoto Protocol agreement, he was involved in the first carbon transaction relating to forestry. New Forests came into existence at the same time as a host of carbon funds, many of which failed, making institutional investors wary of climate finance.

The firm’s investment thesis is rooted in sustainability. It claims to “support the role of forests as nature-based solutions, provide sustainable wood fibre for the growing circular bioeconomy, and contribute to the sustainable development of regional economies and rural communities.”

Mitsui and Nomura will provide capital to support strategic growth initiatives and the global expansion of its investment platform. New Forests will also leverage Nomura’s distribution network,  particularly across Japan and more broadly in Asia.

“New Forests has achieved a great deal over the past 17 years, growing institutional investment in the forestry asset class and re-imagining the investment opportunities in rural landscapes. The rising need to substantially increase investment in sustainable land use, along with increasing investor interest is creating an opportunity to accelerate the growth of New Forests,” said Brand in a statement.

Mitsui added that New Forests is part of its sustainability strategy to invest in companies at the forefront of climate change mitigation. Nomura said that the firm’s approach to climate change complements its efforts to help address environmental challenges, with investment in sustainable land use and forestry seen as a key part of the solution.

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• Topics
• Australasia
• GPs
• Buyouts
• Cleantech
• Infrastructure
• North Asia
• Australia
• Asia
• New Forests
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• Agriculture
• M&A
• Japan
• Mitsui & Co
• Nomura