Timberland Investment Group: Exploring the Benefits of Investing in Timberland

Timberland Investment Group (TIG) is a timberland investment management organization. TIG has a 40+ year track record of timberland investment, making it one of the world’s largest and oldest timberland managers.

TIG manages nearly US$ 4 billion in assets and commitments and ~2.6 million acres of forests throughout the U.S., Latin America, and elsewhere (as of February 2021) [1].

TIG is fully integrated from investment management down to the management of forests on the ground.

Their investment strategy involves acquiring and managing high-quality timberland assets, with a focus on generating superior returns through sustainable forest management, while also delivering environmental and social benefits [2].

TIG’s recognition and commitment to best practices are demonstrated through their certification by the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC), which are globally recognized certification systems for sustainable forest management [3].

Investing in timberland can be a lucrative investment strategy, but it’s important to understand the risks and benefits involved.

Frequently asked questions about timberland investment include questions about liquidity, management fees, and the environmental impact of timber harvesting.

TIG provides answers to these questions and more on their website, making it a valuable resource for anyone considering timberland investment [4].

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Key Takeaways

Timberland Investment Group (TIG) is a timberland investment management organization that manages nearly US$ 4 billion in assets and commitments and ~2.6 million acres of forests throughout the U.S., Latin America, and elsewhere.
TIG’s investment strategy involves acquiring and managing high-quality timberland assets, with a focus on generating superior returns through sustainable forest management, while also delivering environmental and social benefits.
TIG is certified by the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC), which are globally recognized certification systems for sustainable forest management.

Investment Strategy and Management

The Timberland Investment Group (TIG) is a timberland investment management organisation (TIMO) that seeks to deliver sustainable timberland investments to institutional investors at scale. TIG is fully integrated from investment management down to the management of forests on the ground.

With more than 1,000 years of combined investment knowledge, TIG has a professional staff of over 80 employees in 7 offices across the Americas.

Global Timberland Assets and Sustainability

TIG has nearly US$ 4 billion in assets and commitments and ~2.6 million acres under management throughout the US, Latin America, and elsewhere (as of February 2021). TIG’s forestry team has over 350 years of combined forestry experience, which includes expertise in forest management, silviculture, harvesting, and reforestation. TIG’s investment strategy focuses on investing in sustainable timberland assets that provide a balance of current income and capital appreciation while maintaining a long-term focus on sustainability and biodiversity.

Investor Relations and Fund Management

TIG’s investor relations team is dedicated to helping clients achieve their investment goals. TIG partners with clients to help them understand the investment process and to provide them with the information they need to make informed investment decisions.

TIG’s fund management team is responsible for the management of client investments. TIG has a 40+ year track record of timberland investment, and its funds have consistently outperformed industry benchmarks. TIG is committed to ESG and impact investment principles. TIG was named the Timberland Fund Manager of the Year by Private Equity International in 2018.

TIG’s leadership includes Gerrity Lansing, who has over 30 years of experience in the timberland and agriculture industries. TIG is a member of the ImpactAssets 50, a list of the top 50 impact investing fund managers.

TIG’s impact investment strategy includes a focus on climate change and sustainable forestry practices. TIG’s forestry practices are certified by the Forest Stewardship Council (FSC) and the Sustainable Forestry Initiative (SFI). TIG is committed to biodiversity conservation and has implemented conservation easements on over 100,000 acres of land.

TIG’s investment strategy is focused on long-term value creation through sustainable timberland investments. TIG’s funds provide investors with exposure to an asset class that has historically provided attractive returns and low volatility. TIG’s investment banking partner is BTG Pactual, one of the largest investment banks in Latin America.

Recognition and Commitment to Best Practices

Timberland Investment Group (TIG) has received numerous awards and industry recognition for its environmental and social governance initiatives. The company has been recognised for its commitment to sustainable investment, green finance, and environmental markets.

TIG’s judging panel comprises industry experts who ensure objectivity and credibility in the judging process. The editorial team reviews the submitted entry material to avoid any conflict of interest.

Awards and Industry Recognition

From March 2022 to April 2023, TIG will participate in the Environmental Finance (EF) Impact Awards, which recognise excellence in ESG investment initiatives. TIG has been shortlisted for the ESG Investment Initiative of the Year and Investment Team of the Year categories. The awards aim to recognise best practice, thought leadership, and innovation across asset classes and geographies.

In April 2021 to September 2022, TIG was named in the ImpactAssets 50 Awards, which recognise top impact investing firms. The 501(c)3 organization’s review committee assessed TIG’s AUM, impact goals, and criteria. TIG was recognised for its under-represented impact theme and leadership diversity.

Environmental and Social Governance Initiatives

TIG has made significant strides in promoting sustainable wood products and conservation.

In May 2022, TIG was shortlisted for the Agri Investor Awards’ Deal of the Year, which recognises the best private investment in agribusiness. TIG’s investment team worked with the Nature Conservancy to protect and restore over 13,000 acres of forestland.

TIG’s ESG investment initiative is confidential, and the entry material is only available to the judging panel. The company has made a commitment to best practice in impact investing and has been recognised for its efforts. TIG has been named in the IA 50 list, which recognises top impact investing firms. The list is created based on nominations from investors in the field of impact investing.

Frequently Asked Questions

How does one begin investing in timberland?

Investing in timberland usually requires a large amount of capital, as the minimum investment can range from a few hundred thousand to several million pounds.

Investors can start by researching timberland investment management organizations (TIMOs) that specialize in managing timberland assets. These TIMOs typically offer investment opportunities in timberland funds, which pool together capital from multiple investors to acquire and manage timberland assets.

What are the expected returns from timber investments?

The expected returns from timber investments can vary depending on a number of factors, including the type of timber, the location of the timberland, and the management practices employed.

Historically, timberland investments have produced solid returns, with some estimates suggesting an average annual return of around 8-10%. However, it is important to note that timberland investments are typically long-term investments, with returns realized over a period of 10-20 years or more.

Could you explain the concept of a timberland fund?

A timberland fund is a type of investment vehicle that pools together capital from multiple investors to acquire and manage timberland assets. Timberland funds are typically managed by TIMOs, which specialize in managing timberland assets. Investors in timberland funds typically receive returns in the form of capital appreciation and income from the sale of timber.

What are the advantages and disadvantages of timberland investment?

One advantage of timberland investment is that it can provide diversification benefits, as timberland assets are not highly correlated with traditional asset classes such as stocks and bonds.

Timberland investments can also provide a hedge against inflation, as timber prices tend to rise in line with inflation. However, timberland investments also have some disadvantages, including the illiquid nature of the assets, the high capital requirements, and the long investment horizon required.

How does timberland investment compare to traditional asset classes?

Timberland investments have historically produced solid returns that are generally comparable to or better than traditional asset classes such as stocks and bonds.

Timberland investments also offer diversification benefits, as timberland assets are not highly correlated with traditional asset classes. However, timberland investments are typically illiquid and require a long-term investment horizon, which may not be suitable for all investors.

What factors should be considered when selecting a timberland investment opportunity?

When selecting a timberland investment opportunity, investors should consider a number of factors.

These factors include the location of the timberland, the type of timber, the management practices employed, and the experience and track record of the investment manager.

It is also important to carefully evaluate the risks associated with timberland investments.

These include the risk of natural disasters, disease, and other factors that can impact timber yields.