Gresham House announces final close of Forest Fund VI at £375 million
Gresham House, the UK’s largest forestry asset manager and a specialist in alternative investments, has announced the final close of its Forest Fund VI LP at £375 million. This marks both the firm’s largest-ever forestry fundraise and what is believed to be the largest forestry fundraise in the UK.
The fund has secured £375 million in commitments from institutional investors, including London CIV, multiple Wales Pension Partnership member funds, and a Japanese investor. It builds on existing support from Local Government Pension Schemes and high-net-worth individuals. The capital raised in this final close will be deployed across a mix of unplanted land designated for productive woodland creation and established forests throughout the UK.
Gresham House Forest Fund VI LP follows an asset-backed strategy aimed at delivering strong, diversified returns for investors while also supporting carbon sequestration and enhancing natural capital through biodiversity initiatives. The current portfolio spans more than 6,000 hectares across 12 properties in Scotland and Wales. With a target net IRR of 8%, returns are generated through sustainable timber harvesting, land appreciation, and additional revenue from renewable energy development and operation on forest sites.
Forestry has demonstrated strong, risk-adjusted returns over the past four decades, driven by rising land values, increasing timber prices, and sustained investor demand for sustainable assets. Unlike mainstream asset classes, forestry remains resilient to macroeconomic cycles, with biological tree growth providing a natural yield. Gresham House Forest Fund VI LP is well-positioned to benefit from long-term timber price appreciation, in line with inflation, and government-backed afforestation initiatives that further enhance returns.
Beyond financial gains, the fund is expected to contribute to carbon reduction, biodiversity preservation, and flood mitigation, sequestering an estimated 4.7 million tonnes of CO2 over the next 25 years. Where applicable, investors will receive distributions in the form of carbon credits, which can be sold to generate additional returns or retained for carbon insetting purposes.
Gresham House currently manages £3.4 billion in forestry assets, reinforcing its position as the UK’s leading forestry manager and the seventh-largest natural capital manager in the world.
“This milestone fundraise is a clear reflection of the increasing global recognition of European forestry as a compelling asset class,” said Olly Hughes, Managing Director, Forestry at Gresham House. “UK and European forestry offers a unique combination of natural capital growth and long-term income streams, underpinned by the biological growth of trees and the security of underlying land ownership. As the transition to a lower-carbon economy accelerates, demand for sustainably sourced timber continues to rise, driven by government initiatives and the growing adoption of wood-based construction materials. Gresham House Forest Fund VI LP enables investors to capitalise on these structural trends while making a tangible impact through carbon sequestration and biodiversity enhancement. As the UK’s largest forestry asset manager, and seventh largest globally, we remain committed to delivering long-term value for investors through responsible and sustainable forest investment and management.”
Cllr Elwyn Williams, Chair of the Joint Governance Committee, on behalf of the investing member funds of the Wales Pension Partnership, says:
“Forestry offers the compelling combination of uncorrelated financial returns and measurable environmental benefits – from boosting biodiversity to contributing meaningfully to carbon sequestration. We are particularly pleased that this Fund includes exposure to forestry assets in Wales which will not only support environmental objectives but also help create rural jobs and sustain local economies.”
Vanessa Shia, Head of Private Markets at London CIV, says: “Gresham House Forest Fund VI LP will deliver stable, long-term returns for our clients while actively tackling climate change and supporting ecosystem preservation. We view forestry as a core asset class and a key pillar of our LCIV Nature Based Solutions Fund. Gresham House brings the expertise and proven track record needed to manage these assets responsibly and at scale.”
