O Banco BTG Pactual (BPAC11) raised US$ 230 million in the first round of investments from its reforestation fund in Latin Americamanaged by a bank manager, the Timberland Investment Groupaccording to people familiar with the matter.
The fund has already bought its first property, a 20,000-acre (8,000-hectare) cattle ranch in central Brazil that used to belong to one family, said one of the people, asking not to be named because the matter is not public. Representatives of TIG and the BTG didn’t want to comment.
Conservation International will act as impact advisor to the fund, which seeks to invest $1 billion over five years and generate climate, environmental and social benefits, along with financial returns.
BTG seeks to meet the growing demand from US, Canadian and European pension funds for investments that meet environmental and social standards.
The plan is to protect and restore natural forests in degraded landscapes across Latin America, plant hundreds of millions of trees in independently certified sustainably managed commercial forests, and provide carbon credits. It also aims to support inclusive community development.
Foreign investors can buy a maximum of 49% of land in Brazil, so the fund will be a vehicle for them to invest without exceeding this limit.
TIG has $5.6 billion in assets under management, according to its website.
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