IMPACTASSETS 50™

An Annual Showcase of Impact Investment Fund Managers

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An Annual Showcase of Impact Investment Fund Managers

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ImpactAssets 50: A Global Landscape of Impact Investment Fund Managers
The ImpactAssets 50 (IA 50) is the first open-source, publicly published database of experienced private debt and equity impact investment fund managers.
https://www.impactassets.org/impactassets-50

ImpactAssets 50

An Annual Showcase of Impact Investment Fund Managers

IA 50 2024 PROFILE

BTG Pactual Timberland
Investment Group, LLC

Total Assets Under Management: $1B or more
Asset Class: Commodities, Private Equity
Primary UN Sustainable Development Goal: 15 – Life on Land
Clean Technology, Alternative Energy & Climate Change
Natural Resources and Conservation
Job creation and workforce development

Firm Overview

Category: Real Assets - Forestry

As one of the world’s oldest and largest timberland investment management organizations, TIG manages assets and commitments of US$ 5.7B and 3M acres and has returned more than US$ 2.7B to investors throughout its 40+ year track record. TIG and its directly owned and affiliated companies have over 150 professional staff members located across 24 offices bringing exceptional local, regional, and global experience to bear on the careful management of client investments. TIG is dedicated to the integration of sustainability throughout its entire investment process (~97% of its global footprint is certified to FSC and SFI sustainability standards) and has launched innovative collaborations with two of the world’s largest environmental NGOs. TIG’s assets are primarily based in North America (U.S.) and Latin America (Brazil, Uruguay, and Chile).

Firm Headquarters: US & Canada
Years of Operation: 10 years or more
Total Assets Under Management:
$1B or more
Total Number of Investors: Between 5 – 25
% of Capital from Top 3 Investors: 50% – 99%
Investment Thesis:

TIG seeks to sustainably manage the world’s timberland while generating compelling investment returns, delivering net positive environmental and social impact through the management of its clients’ assets in alignment with its investment and stewardship principles, third-party sustainability standards, and collaborations with global environmental NGOs. 

Investment Overview:

TIG seeks to sustainably manage timberland investments in North and South America at scale, with a significant and strong on-the-ground presence, utilizing forestry as an opportunity to sequester carbon, produce sustainable wood products, and improve social-ecological systems while generating financial returns. Currently, TIG has three primary investment strategies: a Latin America Reforestation Strategy, a Core Latin America Strategy, and a Core U.S. Strategy. The Latin American strategies are both closed end strategies. The Latin America Reforestation Strategy is TIG’s impact-focused strategy targeting forest protection, restoration, sustainable reforestation, and carbon removals at scale with Conservation International as Impact Adviser. The Core Latin America Strategy is focused on acquiring brownfield, core commercial timberland assets. The Core U.S. Strategy is a diversified, open ended strategy focused on core U.S. commercial timberland with The Nature Conservancy as Conservation Advisor helping deliver conservation outcomes at scale. 

Company Differentiator:

TIG believes that it is differentiated from its competitors by its: -Track Record: 40+ year track record operating through multiple economic cycles with over US$ 2.7B returned to investors since inception and more than 230 transactions executed worldwide -Operational Excellence: Dedicated and experienced team with significant infrastructure, comprised of 150+ professional staff managing 3M acres of sustainable forests via 24 offices -Alignment of Interests: Substantial GP investment alongside LPs -ESG Capabilities: Robust ESG framework closely integrated into all investment processes, significant ESG expertise among its professionals, and innovative collaborations with two of the largest environmental NGOs

Investment Example

TIG launched the Latin America Reforestation Strategy to pursue large-scale reforestation of degraded lands in Latin America, restoring and permanently protecting natural forest across 50% of the portfolio, establishing FSC-certified commercial tree farms on the remaining land, and investing in the development of processing facilities to manufacture climate positive forest products. This strategy acquired its keystone asset in 3Q2022, a ~24k ha contiguous property (primarily cattle pasture) in Mato Grosso do Sul. The proposed restoration design seeks to maximize positive impacts on water quality, watershed function, and habitat connectivity. The restoration of ~2.6k ha of natural forest and establishment of 400m riparian buffers is expected to enhance ecologically important riparian habitats, creating a ~5km corridor to a large neighboring natural forest and connectivity across more than 10k ha of natural forest. To the best of TIG’s knowledge, this may be one of the largest restoration projects in the Brazilian Cerrado.

Leadership and Team

Cumulative Leadership Experience in Impact Investing:
30 years or more
Cumulative Impact Experience of Top Three Firm Leaders:
30 years or more
Mark Wishnie – Chief Sustainability Officer and Head, Impact Investment Management More Info

Mark provides overall leadership on sustainability policy and performance for TIG. Mark previously led the Global Forestry program at The Nature Conservancy (TNC), and before joining TNC, led Portfolio Management and Portfolio Analytics at TIG. Mark was a Founder and Managing Director of Equator, LLC and its Brazilian subsidiary, TTG Brasil. Prior to Equator, Mark led reforestation research for the Smithsonian Institution and was Program Director for the Yale Tropical Resources Institute. Mark serves on the Executive Committee of The Forests Dialogue at Yale, and Mark’s research has been published in Sustainability, Forest Ecology and Management, Conservation Biology and The Annual Review of Anthropology. Mark received his B.S. in Forestry from the University of Washington and his Master of Forest Science from Yale.

Gerrity Lansing – Head of BTG Pactual Timberland Investment Group More Info

Gerrity provides overall strategic and business leadership for TIG, and is a Managing Director and Partner of BTG Pactual. Prior to his current role, Gerrity was a Founder and CEO of Equator, LLC and its Brazilian subsidiary, TTG Brasil Investimentos Florestais Ltda (“TTG Brasil”), which was acquired by BTG Pactual in 2012. Prior to this, Gerrity spent nearly a decade building and as CEO of Madison Trading, LLC and Chatham Energy Partners, LLC (acquired by The Intercontinental Exchange). He is on the Board of the Nasher Museum of Art at Duke University, the Buckley School in New York City, the National Alliance of Forest Owners (NAFO) and La Fundación de la Universidad del Valle de Guatemala. Gerrity received his B.A. from Duke University.

Mitchell Kosches – Chief Operating Officer and Head, Investment Management More Info

Mitch has spent his career in accounting, finance, and investment banking, including more than 12 years of timberland investment experience. Mitch oversees all phases of transaction execution and investment management within TIG. Prior to this role, he was a Founder and COO of Equator, LLC and its Brazilian subsidiary, TTG Brasil, where he was responsible for day-to-day operations. Prior to joining TTG Brasil, Mitch was the CFO of Chatham Energy Partners, LLC and Madison Trading, LLC. Mitch also worked as an investment banker, first at Gruntal & Co., and later at Brean Murray and Co., Inc. and as an accounting manager in Donaldson, Lufkin and Jenrette’s Merchant Banking Group.

Percentage of Investment Professionals who identify as women:
25% to less than 50%
Percentage of Investment Professionals who identify as people of color:*
Percentage of Senior Management Team who identify as women:
Less than 25%
Percentage of Senior Management Team who identify as people of color:*
*People of color include: Black, Latinx, Asian, Native American/Alaskan Native, Pacific Islander, Middle Easterm and multi-racial Americans

Financial Performance

Target Financial Returns Relative to Benchmark:
Market Rates
Actual Performance of Impact Products/Funds Relative to Target Financial Returns in the Past Three Years:
In line with initial target returns
Financial Reporting Frequency to Investors or Donors
Quarterly

Impact Performance

Percentage of Total Assets Under
Management that are Impact Investments:
75% – 99%
Primary Impact Outcomes:
Conserving land, oceans, ecosystems and natural resources
Secondary Impact Outcomes:
Addressing climate change and environmental issues
Creating jobs
Addressing gender inequities
Value-added Services Offered:
Other: Rural employment and job training

Investments systematically target companies where social and/or environmental impact is integral to the product/service being created:

TIG targets investments in sustainably managed timberland assets with a focus on maximizing their net positive environmental, climate, and social impacts.  ESG considerations are key to the due diligence process. TIG applies its Ten Stewardship Principles to any potential acquisition and assesses environmental risks pre-acquisition to audit and certify compliance with third-party sustainability certifications (such as FSC and SFI) and to address other site- and project-specific issues that may arise, including, but not limited to, potential environmental or social impacts. The findings of TIG’s ESG due diligence process are included in every acquisition’s Investment Memorandum and are debated alongside other key underwriting assumptions prior to approval.  Once acquired, TIG seeks to certify all eligible properties to third-party verification programs and, where applicable, collaborate with The Nature Conservancy and Conservation International to enhance positive impacts. Currently 97% of TIG properties globally are certified to internationally recognized third-party standards. 

Investments systematically include social and environmental sustainability practices in the due diligence process:

TIG’s underwriting process includes a carefully tailored evaluation of all ESG risks, mitigants, and opportunities of a potential acquisition. This analysis includes, but is not limited to, an analysis of environmental licenses, forestry permits and licensing procedures, applicable environmental laws, rights of third parties (indigenous and/or traditional communities), forest certification, and field assessment surveys (protected areas; waterways; prevention of environmental damage; soil protection; chemical waste deposits and soil contamination; waste management plan). For instance, in 2017, TIG acquired Lumin, an integrated forest products company in Uruguay. During acquisition, an opportunity to increase ESG initiatives focused on gender equality and community development was identified and supported by TIG. Lumin is now the first rural Uruguayan manufacturing company to commit to the seven Women Empowerment Principles established by the UN Global Compact and UN Women and, in 2019, Lumin received the UN Women Award for Gender Equality. 

Impact Tracking and Monitoring

Impact is Tracked:
Yes
Impact Verified by an Independent Third-Party:
No
Social and/or Environmental Impact is Reported to Investors and Donors:
Yes – to the public
Third Party Validations:
Member of Impact Capital Managers
Impact Frontiers Cohort Participant
Implement recommendations from Task Force on Climate Related-Financial Disclosure
Net Zero Assets Managers Initiative
Utilizes standardized impact metrics (e.g. IRIS+, GIIRS, etc.)
Participant on steering committees or leadership roles within impact industry associations
Publisher or contributor to industry white paper or other research in impact investing

Learn More

Key Contact Name: Rodrigo Bandeira
Phone: +1 123 456 7890
Mailing Address:

601 Lexington Ave, 57th floor, New York, NY 10022 USA

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