Nest, the UK pension scheme, has announced the appointment of BTG Pactual Timberland Investment Group (BTG Pactual TIG) to execute a strategy that will provide its members with exposure to sustainably managed timberland across key regions in the Americas. As part of this agreement, Nest has committed an initial $750 million to BTG Pactual TIG.
This appointment follows a procurement process for fund managers initiated by Nest in 2023, designed to enable the pension scheme to access sustainably managed timberland. It marks the second timberland mandate awarded by Nest, following last year’s appointment of J.P. Morgan Asset Management’s timberland investment advisory company, Campbell Global, to establish a new evergreen timberland fund.
Nest has highlighted the investment and sustainability benefits of timberland management as an asset class. When managed correctly, timberland investments promote sustainable forestry practices, ensuring responsible management of forest resources, preserving biodiversity, and maintaining ecosystems. Additionally, timberland provides a renewable resource for uses ranging from construction materials to biodegradable packaging.
Stephen O’Neill, Head of Infrastructure & Natural Capital at Nest, stated: “Nest and BTG Pactual TIG share the belief that investing in a sustainable manner can achieve strong risk-adjusted returns. BTG Pactual TIG’s focus on sustainable forestry practices and commitment to maintain productive, respectful relationships with the local communities and workforce helped demonstrate that they are the right partner for Nest.”
BTG Pactual TIG was established in 2013 following BTG Pactual’s acquisition of timberland asset management companies TTG Brasil and Regions Timberland Group. The company is one of the largest global timberland investment managers, overseeing 2.6 million acres across the U.S. and Latin America, with $7.3 billion in assets and commitments. Nest noted that the firm stood out in the procurement process due to its “strong track record in managing timberland assets at scale while prioritising environmental stewardship.”
Gerrity Lansing, Head of BTG Pactual TIG, commented: “We are proud to partner with Nest on this significant mandate. Our collaboration reflects a shared commitment to long-term value creation and sustainable land management. Through this bespoke strategy, we will apply our large-scale timberland platform, on-the-ground expertise, and rigorous sustainability standards to seek to deliver financial and environmental outcomes for Nest and its members.”
