Sydney-based investment manager New Forests has officially announced the launch of its Global Landscape Opportunities (GLO) strategy, representing the firm’s first globally integrated natural capital fund designed to provide institutional investors with a diversified portfolio of nature-based real assets. The firm is seeking to raise A$1 billion (approximately USD $707 million) for the new vehicle, which will target a sophisticated blend of sustainable forestry, agricultural land, carbon projects, and biodiversity markets across both developed and emerging economies.
The GLO strategy marks a significant evolution for New Forests, which has spent nearly two decades specializing in regional mandates. By consolidating global opportunities into a single fund, the firm aims to meet the surging demand from institutional players—including pension funds, insurance companies, and sovereign wealth funds—for assets that offer inflation protection, low correlation to traditional equities, and measurable environmental impact.
The Strategic Framework of the GLO Fund
The Global Landscape Opportunities strategy is built upon a multi-asset approach to natural capital. Unlike traditional timberland or farmland funds that often focus on a single commodity or geography, GLO seeks to capture value across the entire landscape. This includes not only the biological growth of trees and crops but also the emerging value of ecosystem services.
According to the fund’s proposed asset allocation, New Forests intends to deploy 60% to 80% of the capital into developed markets. This includes the United States, Canada, Europe, the United Kingdom, Australia, and New Zealand. These regions are favored for their mature legal frameworks, established land titles, and robust infrastructure, providing a stable foundation for the fund’s core returns.
Up to 30% of the portfolio will be directed toward developed Latin American markets, specifically Brazil, Uruguay, and Chile. These nations have become global hubs for competitive timber production due to favorable growing conditions and integrated supply chains. The remaining 20% of the fund’s capacity is reserved for high-growth potential regions, including Southeast Asia, other parts of Latin America, and Africa, where natural capital investments can drive significant social and environmental co-benefits alongside financial returns.
Institutional Demand for Natural Capital
The launch of the GLO strategy comes at a pivotal moment for the global investment community. As central banks grapple with long-term inflationary pressures and traditional asset classes face increased volatility, "real assets" like land and timber have gained favor.
Mark Rogers, Chief Executive Officer at New Forests, highlighted this shift in investor sentiment, noting that natural capital is no longer viewed as a niche alternative but as a core component of a resilient portfolio. "Natural capital is increasingly recognized as a core component of resilient portfolios, offering the potential for long-term returns while supporting critical outcomes such as climate stability, biodiversity, and sustainable land use," Rogers stated.
The fund is specifically tailored for institutional investors such as family offices, endowments, and foundations that require long-duration assets to match long-term liabilities. The appeal lies in the "biological engine" of the investment; trees continue to grow regardless of market fluctuations, providing a natural hedge against economic downturns.
The Role of Carbon and Biodiversity Markets
A defining feature of the GLO strategy is its emphasis on complementary markets, such as carbon credits and biodiversity offsets. As more than 90% of the global economy is now covered by some form of net-zero pledge, the demand for high-quality, nature-based carbon removals has skyrocketed.
New Forests plans to integrate carbon project development directly into its forestry and agricultural operations. By sequestering atmospheric carbon through reforestation or improved forest management, the fund can generate carbon credits that either offset the portfolio’s footprint or are sold into voluntary and compliance markets.
Furthermore, the fund is positioned to capitalize on the nascent biodiversity market. With the recent finalization of the Taskforce on Nature-related Financial Disclosures (TNFD) framework, corporations are under increasing pressure to report on their impact on nature. This is expected to create a new revenue stream for landholders who can demonstrate measurable improvements in local flora and fauna, effectively turning conservation into a bankable asset class.
Historical Context and Firm Background
Founded in 2005, New Forests has established itself as a pioneer in the natural capital space. Headquartered in Sydney, the firm has expanded its footprint to include offices in Singapore, San Francisco, and Nairobi. Prior to the launch of GLO, the firm was primarily known for its regional funds, such as the Australia New Zealand Forest Fund (ANZFF) series and the Tropical Asia Forest Fund (TAFF).
As of mid-2026, New Forests manages assets for a global client base, overseeing millions of hectares of land. The firm’s growth has been bolstered by strategic partnerships; in 2022, Mitsui & Co., Ltd. and Nomura Holdings, Inc. acquired New Forests, providing the firm with the institutional backing and global network necessary to scale its operations to the billion-dollar level seen with the GLO strategy.
David Shelton, Global Head of Investments at New Forests, emphasized the economic fundamentals driving the fund. "Natural capital offers a compelling investment proposition, with characteristics such as attractive long duration return profiles, inflation hedging, and low correlation to traditional asset classes," Shelton said. He added that the strategy provides direct exposure to the "fundamental global demand for food, fiber, renewable energy, and ecosystem services."
Chronology of Natural Capital Investment Evolution
To understand the significance of the A$1 billion GLO fund, it is essential to look at the timeline of how natural capital has moved into the mainstream:
- 2005–2010: The "Timberland Investment" Era. Forestry was viewed primarily as a subset of real estate, focused almost exclusively on sawlog and pulpwood production.
- 2011–2018: The Rise of ESG. Investors began requiring managers to certify forests through organizations like the Forest Stewardship Council (FSC). Sustainable agriculture started gaining traction.
- 2019–2023: The Carbon Explosion. Following the Paris Agreement, nature-based solutions became the primary tool for corporate net-zero strategies. New Forests and its peers began integrating carbon sequestration into financial models.
- 2024–2026: The Integrated Landscape Approach. Modern funds like GLO now treat land as a multi-revenue platform where timber, food, carbon, and biodiversity are managed holistically.
Broader Economic and Environmental Implications
The launch of a A$1 billion fund dedicated to global natural capital suggests a maturation of the sector. For the broader economy, this influx of institutional capital into nature-based assets could accelerate the transition to a bio-economy. By investing in sustainable forestry, the fund supports the production of renewable building materials (such as cross-laminated timber) that can replace carbon-intensive steel and concrete.
On the agricultural side, the fund’s focus on sustainable food systems addresses the dual challenge of feeding a growing global population while reducing the environmental footprint of farming. Investments in regenerative agriculture can improve soil health, increase water retention, and reduce the need for synthetic fertilizers.
From an environmental perspective, the GLO strategy provides a mechanism for private capital to flow into conservation. While government grants and philanthropy have historically funded conservation, they are insufficient to meet the trillions of dollars required to halt biodiversity loss. Institutional funds like GLO bridge this gap by proving that protecting and restoring nature can be a profitable endeavor.
Risk Management and Diversification
Investing in natural capital is not without risks. Physical risks, such as wildfires, pests, and climate-driven droughts, pose a constant threat to biological assets. Additionally, investing in emerging markets introduces political and currency risks.
New Forests aims to mitigate these risks through its "globally integrated portfolio" approach. By spreading investments across different hemispheres and climate zones, the fund reduces the impact of a single catastrophic event. For instance, a drought in Australia may be offset by a high-yielding harvest in Brazil. Furthermore, the 60-80% allocation to developed markets provides a "ballast" of stability, allowing the fund to take calculated risks in higher-growth regions like Southeast Asia and Africa.
Analysis of Future Market Trajectory
The success of the GLO strategy will likely serve as a bellwether for the natural capital industry. If New Forests successfully reaches its A$1 billion target and begins deploying capital effectively, it will likely encourage other major asset managers to launch similar global mandates.
The integration of biodiversity and carbon into a single investment vehicle also sets a new standard for "impact transparency." Investors are no longer satisfied with vague "green" claims; they require rigorous data on carbon tonnes sequestered and species protected. New Forests’ long history in technical forestry and environmental science positions it to provide the high-integrity data that modern institutional investors demand.
As the world moves toward the 2030 deadline for the United Nations Sustainable Development Goals, the role of private investment in natural capital will be paramount. The GLO strategy represents a sophisticated attempt to align the requirements of global finance with the urgent needs of the planet’s ecosystems. By treating the landscape as a valuable, productive, and essential asset, New Forests is helping to redefine the relationship between capital and the natural world.
