Name of fund/investment opportunity:
African Forestry Impact Platform (AFIP)
The offer/deal available:
AFIP’s investment strategy seeks to establish a large scale, long-term and value creation focused, actively managed investment platform which will deploy capital across the forest landscape in Sub-Saharan Africa (including Sudan and South Sudan). It is focused on impact investing through developing markets investing with focus on climate, socioeconomic development and import substitution through a combination of timber sales with carbon credits. It seeks to deliver a nominal net return of 10-12% nominal, gross of fees.
Key reasons investors would find it attractive to invest with you:
New Forests is well positioned to lead forestry investments in Africa by:
- Having a global track record as a forestry asset manager which provides economic advantage in global market sourcing.
- Having local teams with regional insights and experience complemented by New Forests’ global team for sound investment and asset management decision making that enhances return and reduces project and market risk on our investments.
- Long term investment vehicle allows us to optimise return on investment without the constrain of fund exit.
- Integrating impact strategies on climate and social development to our investment thesis.
Specific investment and benefits:
AFIP targets a fund size of USD500m, It aims to establish a large scale, long-term and value creation focused, actively managed investment platform which will deploy capital across the forest landscape in Sub-Saharan Africa. It seeks to deliver a nominal net return of 10-12% nominal, gross of fees. Have 4 impact targets embedded in fund investment and operations management strategy with part of manager carried interest tied to meeting them. Impact targets include:
- Net carbon removals,
- Grow quality of biodiversity habitat
- Improving quality of livelihoods for local communities
- Achieve 2X gender equality across 80% of portfolios.