Brookfield Asset Management has held the final close on Brookfield Timberlands Fund V with equity commitments totalling USD1bn.
The fund will invest in timberlands, primarily in the US, Brazil and Australia and may also pursue opportunities in Canada, Chile, Uruguay and New Zealand.
Commitments to the fund exceeded the original USD750m fundraising target, reflecting strong investor demand. Investors in the fund include a diverse group of institutional investors, including sovereign wealth funds, public and private pension plans and insurers. Brookfield committed USD250m to the fund, aligning its interests with those of third party investors.
"We believe this fund will allow our investors to invest in large-scale, high quality timberland assets on a value basis. The fund will leverage the operating skills of Brookfield's seasoned team of timberland professionals and actively manage assets to seek to achieve strong risk-adjusted total returns over the long-term," says Reid Carter, managing partner of Brookfield Timberlands. "The global timber supply and demand outlook is very favourable for timberland owners, and we believe this sustainable, renewable resource offers significant benefits to institutional investors."
Brookfield is one of the largest global timberland asset managers, with over three decades of investing experience and approximately 3.3 million acres of timberlands under management in North and South America. The launch of the new fund follows on the USD270m final close earlier this year of Brookfield Brazil Timber Fund II, which exceeded the target of USD200m.
"We are gratified by the support we have received for Brookfield funds from some of the world's leading institutional investors, who have committed their capital based on Brookfield's successful track record as an investor in real assets," says Leo van den Thillart, managing partner of Brookfield's private funds group.