Individuals flock to forestry investment through Par Equity specialist fund

LONDON, March 2, 2022 /PRNewswire/ -- Par Equity, a leading independent fund manager, announced today that there is growing evidence individual investors are increasingly turning to forestry as they see the 'win-win' of  environmental and financial return on the horizon.

Having been committed to the sector for more than 10 years, Par Equity, the specialist forestry investor, has reported unprecedented high net worth demand for its third and newly-launched Forestry Fund 'Par Forestry III LP'. Nearly £5 million – more than double expected – was raised initially with two further rounds planned this year. The fund plans to raise up to £10m per year to fund investments in existing forests and new planting.

While commercial forestry is proving a well-travelled path for institutional investors attracted by financial and sustainability benefits, high net worth individuals are now increasingly turning their focus to these climate friendly investments to sit alongside the attractive tax position for investment into UK forestry. 

Par Forestry III LP requires a minimum investment of £50,000 and is targeting an IRR consistent with the returns produced for the UK forestry sector. Par's previous funds are now closed for investment.

Paul Atkinson, Partner in charge of forestry investments at Par Equity said: "It is not surprising there is growing interest in investing in the forestry sector, since it delivers environmentally friendly returns in a sustainable way. It is notable that individual investors are turning to these opportunities in view of the proven financial returns now being coupled with investing in an asset that is playing its part in addressing climate change."

Tom Croy, investment manager for the fund, said: "We have been delighted by investor interest to date and we are looking forward to our second close which finalises on April 29, 2022.

People understand that investing in a natural product such as timber should be done over a long-time frame. However, the potential to generate some earlier return is built into the fund mandate."

Investments in forestry benefit from favourable tax treatment. They are exempt from inheritance tax (IHT) after an initial holding period of two years and capital gains tax (CGT) does not apply on growth in the value of the timber, the sale of which is income tax free.

Further information: www.parequity.com