Stafford Capital Partners Announces Initial Close of Pioneering Global Carbon Offset Fund

28 February 2023

Stafford Capital Partners (“Stafford”), a leading private markets and advisory group, today announced the initial close of its carbon offset and sustainable timberland impact strategy.

Stafford held the initial close of the Stafford Carbon Offset Opportunity Fund with USD 242m in investor commitments from the UK local government pension schemes (LGPS) of Essex, Leicestershire and the City and County of Swansea.

The Fund was launched in December 2022 with a USD 1bn fundraising target and is expected to remain open to institutional investors during 2023.

With a 22-year track record of investing in sustainably managed timberland plantations, Stafford has extensive experience in the sector and is recognised as a leading global timberland investor. In this capacity, Stafford saw the critical role that forestry has to play in tackling climate change.

The Stafford Carbon Offset Opportunity Fund is classified as an Article 9 impact fund under the European Sustainable Finance Disclosure Regulation and will look to invest in afforestation, natural forest restoration and improved forest management projects on a global basis.

The Fund offers an innovative solution to investors that are looking to offset their own emissions or, simply, an impact investment underpinned by commercial forestry that is expected to:

• Invest in ~ 200,000 hectares of sustainably managed timberland, including ~ 150,000 hectares on which new commercially managed plantations will be established and natural forest planted;
• Generate ~ 30 million verified carbon offsets for investors (each equivalent to 1 tonne of C02);
• Provide a source of sustainable, low-carbon wood raw materials; and
• Provide an investment with a substantially negative carbon intensity profile and reporting framework that can support the broader decarbonisation of institutional investment portfolios.

Angus Whiteley, CEO of Stafford Capital Partners, commented: “It is with great pride that we announce the initial close of the Stafford Carbon Offset Opportunity Fund, a strategy we feel can make a meaningful contribution to the environment and society.

We believe this fund will deliver the important combination of potential financial returns and environmental benefit that is so needed today. We are very grateful to the investors who have enabled us to achieve this milestone and look forward to making a meaningful contribution to their decarbonisation agenda.

Throughout Stafford, we continue to align our products to help address these environmental and societal needs whilst delivering the financial returns our clients seek.”

Source: Stafford