British public pension scheme Nest has established an evergreen forestry fund that will be invested by JPMorgan subsidiary Campbell Global.
Nest expects to deploy £550 million over the next three years, which is roughly equivalent to 2 percent of its total portfolio.
The £29 billion ($37 billion; €33 billion) pension selected Campbell Global as its preferred manager from a group of 12 firms, in a process that started in October 2023 after a nine-month market warming exercise.
As a defined contribution pension scheme, Nest does not pay performance fees. The pension will pay Campbell Global a fixed management fee.
The fund of one will invest in the US, Australia, New Zealand and Chile, with other potential destinations including countries in Latin America and Europe, as well as Canada.
Nest head of private markets Stephen O’Neill said: “We believe that the importance of preserving natural capital will only increase in the coming years. Many aspects of our ecosystem such as forestry, water and agriculture are closely linked to climate change mitigation and adaptation. Achieving net zero emissions by 2050 will require natural capital preservation.
“Campbell Global is one of the largest and longest-established timberland investment advisory organizations, so we expected them to put in a strong bid. We were particularly impressed by the sophistication of their operations, responsible investment philosophies, and ability to work at scale to minimize operating costs while maximizing integrated asset management.”
