Munich Re Group’s asset manager MEAG broadcasted today that it has issued $207 million in capital commitments at the primary closing of its Sustainable Forestry Equity proceeds. Presented in 2022, the Article 9 fund capitalizes on environmentally sustainable forest management, in arrangement with the description of the EU Taxonomy, in addition to contributing to numerous of the objectives of the United Nations SDGs.
The primary investments of the fund are arranged for the first half of 2024 and will emphasize forested land in New Zealand, the USA, and Australia, with 5% of asset volumes to be capitalized in new afforestation.
MEAG Managing Director and Global Manager of Illiquid Assets, Thomas Bayerl, stated that MEAG has years of experience with forestry funds around the world, and these have been recognized to be a significant stability factor in their portfolio. Given the stimulating circumstances in capital markets right now, they are even more content about the success of the deposit’s primary closing with more than 200 million US dollars.
As per MEAG, forestry investments propose the advantage of a low correlation with additional investment classes, in accumulation to long-term potential for value development due to the worldwide increasing demand for wood, fuelled in specific by the trend towards sustainable creation and materials. The corporation added that the proceeds can aid institutional investors to participate in environmental and social parts of their investments, with forests endorsing biodiversity and carbon confiscation while issuing employment and recreational spaces.
MEAG Managing Director, Frank Becker, accountable for institutional clients stated that the forestry asset class is still unexplored territory for numerous investors. With their many years of know-how, they have been able to assist in building trust in this stimulating asset class. The blend of long-term revenues and sustainability is mainly attractive. As a subsidiary company of Munich Re, MEAG is also preferably situated to develop needs-based resolutions for its customers thanks to its numerous years of experience in the parts of risk management and sustainability.