Capital firm raises over $1 billion for projects that could help solve critical problem: 'Really successful'

Stafford Capital has raised $1.1 billion for sustainable forestry with its latest funding round, according to Reuters. This makes it one of the biggest timberland funds in the world.

Headquartered in London but with offices in seven total countries, Stafford Capital claimed its managed forests sequestered 16 megatons of carbon dioxide equivalent between 2023 and 2024.

Engaging in responsible forestry is deeply important. Mature forests sequester atmospheric carbon, provide the bedrock for biodiversity, improve air quality, reduce heat island effects, and protect against soil erosion. Deforestation from both the timber industry and agriculture is a major threat to those benefits.

Even when engaging in regenerative forestry practices, timberland lacks many of the benefits of natural forests. Trees are grown and organized for harvesting rather than leaving them wild.

Timberlands typically rely on monocrops, so the same species of trees are replanted for easier processing later. This limits biodiversity support to other life in the area.

To combat this, Stafford Capital said it budgets a portion of land in new projects for native species and wildlife. It also said it plants on degraded agricultural lands, which would have low carbon sequestration and biodiversity support compared to managed timberland.

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Trees also offer relatively little carbon sequestration until they're fully mature, which is also when they would be harvested under schemes like these. When cut down, trees release the carbon they've sequestered. Regardless, Stafford sells carbon credits for many of the trees grown in its portfolio.

Sustainably developed forests built on top of degraded farmland are still a net gain for the environment. The more afforestation projects like these that can be mobilized by good funding, the more land can be reclaimed by nature.

"[Stafford International Timberland Fund X] has been a really successful fund raising for Stafford," said London-based Stephen Addicott, co-managing partner at Stafford Capital Partners.

"Over the course of this fundraising period, we have witnessed the growing consolidation of the asset class as a strategic investment and climate solution for institutional investors," Addicott added.