BNP Paribas Asset Management has acquired a majority stake in a Danish natural capital business, International Woodland Company, in a bid to meet the needs of “investors who are increasing allocations to sustainable private investment strategies”.
Currently, the French firm offers clients a range of in-house debt strategies (direct lending, real estate and infra debt, among others) and private equity strategies through commitments to external funds.
IWC oversees €5.5 billion of timberland investment programmes globally, according to a press release. It provides “investment management and advisory services within sustainable timberland investments, agriculture investments and ecosystems services, including carbon credits and conservation projects”.
BNPP AM said: “The natural capital market is evolving rapidly, encouraged by initiatives from the United Nations and other supranational agencies, and expected to be accompanied by the continued development of associated investment and growing client awareness.”
This growth is being picked up by others in the private markets sphere. Bregal Capital has placed natural capital at the heart of its impact investment efforts, while Schroders, AXA IM Alts and Manulife have all made recent moves in the budding area.