Apex Group is set to provide fund administration to the new INVL Sustainable Timberland and Farmland Fund II (STAFF II), which has been established by the Baltic asset management company INVL Asset Management.
STAFF II is intended for institutional and private investors from EU countries. An initial offering of the fund raised €32.45 million from private investors. The target size is €100 million.
The fund will invest in sustainably managed forests and agricultural land in the Baltic Sea region and Central and Eastern Europe.
Vytautas Plunksnis, head of private equity at INVL Asset Management, commented: “We see this fund as a continuation of the INVL Baltic Forests Fund I which started in 2017, but more universal and much broader in geography.”
Plunksnis explained: “The experience we gained and investors’ trust encouraged us to realise the idea of creating long-term portfolios of top-quality forests and agricultural land and managing them according to the strictest standards of sustainable forestry and agriculture. In acting on those goals we did not set any time frame for the fund – its length is unlimited.”
He said the fund’s maximum size will be limited and may not exceed €200 million, though its investor composition may change as some of its participants take advantage of the right to leave the fund within a certain period of time and others take their place.
Plunksnis shared his plans on starting the fund’s activities “closer to home”, looking for acquisitions in the Baltic countries.
He said: “The plan is to invest in Baltic coniferous forests and agricultural land with a high level of productivity and big consolidation potential.”
“Later we plan to expand the portfolio in Eastern EU countries where investment returns are attractive and the regulatory environment is stable. We will heavily emphasise sustainable management of the forests and arable land, considering not just nature conservation but also social responsibility in investing in these asset classes,” Plunksnis added.
