Astarte Capital closes $325m impact forestry fund

Astarte Capital Partners has closed its debut forestry fund on $325 million, significantly surpassing its $200 million target.

SilviPar Astarte Impact Forestry Fund was launched at the start of 2021 alongside partner firm SilviPar.

The impact vehicle will invest exclusively in Paraguay’s forestry sector, targeting low alternative use land to develop an 80,000ha portfolio where approximately 60 million trees will be planted.

This portfolio aims to generate returns from sustainable commercial forestry and carbon credits through the removal of 18 million tonnes of carbon.

Astarte and SilviPar intend to permanently protect more than 25 percent of the portfolio for conservation purposes.

The 10-year closed-end fund was seeded with a $30 million commitment from Astarte, which was drawn from its 2020-vintage Astarte Special Opportunities Platform.

SilviPar managed a 6,000ha forestry portfolio in Paraguay as of 2021 and contributed seed forestry assets and operational infrastructure to the impact forestry fund valued at $30 million. The company manages the day-to-day operations and commercial strategy while Astarte has taken charge of fund management level operations.

Paraguay’s climate makes it comparable with Brazil and Uruguay for having ideal environmental conditions for growing forestry.

Astarte and SilviPar are developing their forests on the river Parana, which is the main logistical channel down to open sea and is close to local pulp mills.

Astarte co-founder and managing partner Teresa Farmaki said a statement: “This achievement reflects not only the confidence investors have placed in our vision but also their recognition for our strong commitments to environmental and social stewardship.

“Each dollar invested is being translated into tangible impact, supporting local communities, safeguarding biodiversity and combating climate change. We celebrate this achievement as an important milestone for our team as well as a powerful example of how sustainable investments can combine economic prosperity, ecosystem benefits and social equity.”

SilviPar chairman Martin Forsen added: “In a world increasingly cognisant of the need for biodegradable and sustainable alternatives, wood emerges as the premier choice among biobased materials, poised to supplant conventional, fossil-based resources.

“By adhering to the highest international sustainability standards in forest and land management, we are not only nurturing local communities and preserving the environment but also cultivating one of the most competitive and sustainable products on a global scale.”