Manulife Financial’s global wealth and asset management business Manulife Investment Management has announced that it has raised $224.5 million in commitments at the initial close of Manulife Forest Climate Fund LP, bringing it nearly halfway to the fund’s targeted $500 million in committed capital.
The new fund, which launched in late 2022 and aims to provide investors with the opportunity to invest in nature and climate change mitigation and deliver value through carbon credits, invests in a globally diversified portfolio of sustainably managed forest areas, with carbon sequestration is given priority over wood. production. The strategy also includes the creation of new forests through afforestation or reforestation.
According to Tom Sarno, Global Head of Timberland Investments at Manulife Investment Management, the capital increase comes amid strong demand for climate change solutions and “strong investor interest in strategies that can help support carbon emissions reductions.” and achieving a net zero commitment.”
“We believe that an investment in the Manulife Forest Climate Fund can help support investors’ various climate goals and objectives and that the experience we have in sustainable forest management, as well as our commitment to high-quality carbon capture, adds additional value to the strategy. .”
According to Manulife, the fund will generate financial returns for investors through the use of carbon credits, easements, non-timber monetization strategies and limited timber harvests. The company added that the long-term supply of carbon credits generated by the fund can be used by investors to support their own climate goals, or to realize financial value through monetization of carbon markets.
Eric Cooperstrom, Managing Director, Impact Investing and Natural Climate Solutions at Manulife Investment Management, said:
“The Manulife Forest Climate Fund builds on our decades of experience in sustainable forest management and is one of the natural climate solutions we have developed to more intensively capture carbon and achieve broader impact. Responsible commitments to reduce and remove emissions, including high-quality forest carbon credits, are extremely important to help investors achieve their climate and financial goals.”