The U.K.’s National Employment Savings Trust, the country’s largest workplace pension scheme, has committed 550 million pounds ($750 million) to a timberland investment fund managed by BTG Pactual Timberland Investment Group. The strategy will provide exposure to sustainably managed timberland across the Americas.
BTG Pactual TIG is one of the world’s largest timberland managers, with $7.3 billion in assets under management across 2.6 million acres of timberland throughout the U.S. and Latin America. BTG Pactual TIG’s parent company is Brazilian financial company BTG Pactual, operator of Latin America’s largest investment platform.
According to a Nest statement, timberland offers diversification of its investments and helps optimize the risk/return profile of its portfolio. BTG Pactual TIG and Nest will work closely to deploy the strategy, which will be executed through private investment vehicles managed by the timberland manager.
“Nest and BTG Pactual TIG share the belief that investing in a sustainable manner can achieve strong risk-adjusted returns,” said Stephen O’Neil, Nest’s head of infrastructure and natural capital, in a statement. “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.”
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BTG will become Nest’s second timberland manager. Last August, the pension committed an unspecified sum to J.P. Morgan Asset Management’s Campbell Global. The fund began a procurement process for its timberland strategy in September 2023.
Nest, the U.K.’s largest workplace pension scheme by membership, serves more than 13 million members and manages more than 50 billion pounds in assets and expects to manage 100 billion pounds by the end of the decade.
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Tags: National Employment Savings Trust (NEST), Nest, Real Assets, timberland
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