UK pension scheme Nest announced the appointment of BTG Pactual Timberland Investment Group (BTG Pactual TIG) to implement a strategy providing its members with exposure to sustainably managed timberland across key geographies in the Americas. As part of the agreement, Nest has committed an initial $750 million to BTG Pactual TIG.
The new appointment follows a procurement process for fund managers initiated by Nest in 2023, aimed at enabling the pension scheme to provide access to sustainably managed timberland. The announcement marks the second timberland mandate awarded by Nest, following the appointment last year of J.P. Morgan Asset Management’s timberland investment advisory company Campbell Global to establish a new evergreen timberland fund.
Alongside the appointment, Nest highlighted some of the key investment and sustainability benefits of timberland management as an asset class, noting that when managed correctly, timberland investments promote sustainable forestry practices, ensuring the responsible management of forest resources, preserving biodiversity, and maintaining ecosystems, in addition to providing a renewable resource for uses ranging from construction materials to biodegradable packaging.
Stephen O’Neill, Head of Infrastructure & Natural Capital at Nest, said:
“Nest and BTG Pactual TIG share the belief that investing in a sustainable manner can achieve strong risk-adjusted returns. BTG Pactual TIG’s focus on sustainable forestry practices and commitment to maintain productive, respectful relationships with the local communities and workforce helped demonstrate that they are the right partner for Nest.”
BTG Pactual TIG was formed in 2013 following the acquisition by investment bank BTG Pactual of timberland asset management companies TTG Brasil and Regions Timberland Group. The company is one of the largest global timberland investment managers, with 2.6 million acres under management across the U.S., and Latin America and $7.3 billion in assets and commitments. Nest said that the firm stood out in the procurement process for its “strong track record in managing timberland assets at scale while prioritising environmental stewardship.”
Gerrity Lansing, Head of BTG Pactual TIG, said:
“We are proud to partner with Nest on this significant mandate. Our collaboration reflects a shared commitment to long-term value creation and sustainable land management. Through this bespoke strategy, we will apply our large-scale timberland platform, on-the-ground expertise, and rigorous sustainability standards to seek to deliver financial and environmental outcomes for Nest and its members.”
