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  • Earth Capital Partners Launch New Latin America Forestry Fund

    2010 - 05.13

    Hedge Fund Review reported that Earth Capital Partners had launched its ECP Forestry Fund One LP Fund investing in sustainable timber plantations in Latin America.

    The general details of the fund are as follows: the fund will be aiming to achieve a $300 million investment, which will have a 10 year maturity and will go towards eight projects in the region. The minimum investment that investors will be expected to put up is $10 million with a 1.5% management fee and 20% performance fee.

    Stanley Fink, Chairman at ECP, commented: “The fund provides a vehicle for institutional investors to engage in forestry and biomass in Brazil and Latin America, which offer attractive returns coupled to strong sustainability benefits. ECP aims to reach a first close for this fund later in 2010 and a final close in 2011.”

    Through its ownership of productive land and fast growing sustainable timber ECP expects to generate solid non-correlated returns.

    ECP’s head of sustainable agriculture and forestry, Bosworth Monck, told Hedge Funds Review that Latin American countries like Brazil offered huge opportunities. As a sign of things to come Monck said that in the initial stages there had been significant interest from investors.

    One of the eight projects proposed was the planting of eucalyptus trees on degraded agricultural land. According to Monck, within seven years the eucalyptus trees could be cut down and turned into charcoal to feed Brazil’s growing iron and steel industry.

    “Trees have a myriad of end markets and there are many end uses for wood. The key component is cost. Latin America is at the forefront of development of species and clones and management techniques of plantations. They are among the most advanced in the world,” noted Monck.

    Other countries in Latin America of particular interest to ECP are Colombia and Central American states, where they hope to find more opportunities like that in Brazil.

    The Timber Investment Blog is sponsored by Greenwood Management. For more information on investing in Forestry please click here

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