Key Takeaways
- Stafford Capital Partners has created a USD 1.2 billion continuation vehicle consolidating three existing timberland funds into a perpetual structure.
- The Fund holds 74 timberland assets across the USA, New Zealand, Australia, and Latin America, totaling more than 6.3 million acres.
- Stafford reports strong investor support, with 73% of existing investors rolling into the new vehicle and significant backing from UK Local Government Pension Funds.
- The portfolio is expected to generate long-term cash yields and contribute to measurable carbon sequestration and conservation outcomes.
- Stafford Capital Partners does not plan to raise new capital for the vehicle but will focus on active asset management and selective divestments.
Stafford Capital Partners Launches USD 1.2 Billion Continuation Fund
Stafford Capital Partners has announced the establishment of the Stafford International Timberland Continuation Fund, a USD 1.2 billion vehicle consolidating three of its existing timberland funds – SIT VI, VII and VIII – into a new perpetual structure. The move marks a significant step in the firm’s long-term stewardship and strategic management of its timberland holdings.
Stafford Capital Partners Details Scope of the Timberland Portfolio
The Continuation Fund includes 74 timberland assets representing more than 6.3 million acres across the United States, New Zealand, Australia, and Latin America. These holdings comprise major positions in the second- and third-largest commercial timberland estates in New Zealand, one of Australia’s largest softwood forest estates, and 37 assets spanning 15 states in the US South.
The firm constructed the fully deployed portfolio over seven years through a mix of secondaries, primaries, and co-investments. Stafford now directly manages 21% of the assets.
Stafford Capital Partners Notes Strong Investor Participation
Of the investors in the previous SIT VI, VII, and VIII funds, 73% chose to roll into the new vehicle, while 27% were replaced by new commitments. UK Local Government Pension Funds represent 54% of the Continuation Fund, illustrating ongoing interest in natural capital assets among institutional investors.
According to the firm, the fund will not seek additional capital or pursue new investments. Instead, Stafford Capital Partners plans to focus on consolidating around the strongest-performing, highest-yielding assets. Part of this strategy includes a planned divestment of approximately 28% of the portfolio over the coming years, with expected cash yields exceeding 8% over a ten-year period.
Stafford Capital Partners Highlights Environmental and Climate Contributions
In 2024, the portfolio sequestered 7.8 million tCO₂e, with part harvested for sustainable wood products. Net sequestration totalled 2.1 million tCO₂e, comparable to the emissions of around 500,000 cars over one year. Over the next decade, the Fund is projected to deliver 17.5 million tCO₂e in net removals.
Beyond carbon benefits, the portfolio includes more than 200,000 hectares under conservation easements, aimed at supporting biodiversity, water quality, and long-term ecosystem services.
Stafford Capital Partners Leadership Comments on Investor Demand
“We are excited to offer investors access to one of the most diversified high quality timberland portfolios globally, supported by our deep sector expertise and asset management,” said Angus Whiteley, CEO of Stafford Capital Partners. “The establishment of the Continuation Fund follows closely behind our USD 1 billion close of SIT X, our tenth core timberland fund. We believe this further signals the growing momentum and institutional interest in timberland as a strategic asset class.”
Stephen Addicott, Managing Partner at Stafford Capital Partners, added, “The strong support from our existing investors demonstrates the continued confidence in our timberland strategy and in a market that continues to deliver stable returns. The Continuation Fund offers investors an opportunity to maintain exposure to a highly diversified, mature timberland portfolio with attractive cash yields and long-term value.”
