Gresham House collects $174m in first close of U.K. forestry fund

Gresham House has held a first close for its Gresham House Forest Growth & Sustainability Fund with £127 million ($174 million) in subscriptions from two major institutional investors.

Launched in June, the sustainability fund exceeded its initial target of £100 million ($137 million).

The vehicle aims to deliver sustainable capital growth through the creation of new productive woodland, while providing exposure to existing income-generating forestry in the United Kingdom. The strategy will target generating returns through the sale of timber and the capital growth of land and trees, while also producing carbon credits from the creation of new woodland.

Gresham House said that in light of a strong deal pipeline and timely deployment, the firm expects to hold a second close for the strategy later this year.

These fundraising efforts come amid rising forestry valuations and a growing appetite from investors to broaden exposure to ESG-aligned strategie