INVL announces Baltic Forest Fund 1 full divestment with a 27% IRR / STAFF II EUR200mn hard cap

INVL Asset Management (“INVL”) today announces the successful full exit of its INVL Baltic Forests Fund I vehicle as it transitions towards a full focus on its recently announced successor, INVL Sustainable Timberland and Farmland Fund II (“STAFF II”). The acquirer of the portfolio is Latvian Forest Company AB.

INVL Baltic Forests Fund I was founded in 2017 and invested in forests in the Baltic States, with a keen focus on Lithuania whose landscape is well suited to support forest-based activities. The aim was to build up a consolidated package of forest land plots, thus increasing their value and the potential income from planned harvesting. It was the first fund with this strategy of its kind and this full exit of land and properties sees INVL achieve a track record of 27% IRR for its investor base.

STAFF II focuses on sustainable timberland and farmland across the Baltic States and Central and Eastern Europe. STAFF II announced in June 2021 that it had successfully raised a further EUR 18.5 million via a second offering and had reached a size of EUR 51 million towards its overall EUR200 million hard-cap target. Fundraising activity is currently ongoing with further closings expected in H1 2022.

Long-term value is created for investors by consolidating portfolios of top-quality forests and agricultural land. In its activities, the fund focuses heavily on the sustainable management of forests and arable land, considering not just the conservation of nature but also corporate and social responsibility. The fund bases its work on sustainable forestry standards and always implements the principles of sustainable farming on its agricultural land.

Sigita Bizulienė, Fund Manager at INVL Baltic Forest Funds I, commented: “We are very pleased to report such a great return of 27% IRR for our highly valued investor base as we announce this full exit for INVL Baltic Forests Fund I. Our intention is now to further develop and make STAFF II a similar success and to that end we have already invested in the Lithuanian and Latvian markets while we continue to explore and originate new targets both in the Baltic regions and in Central and Eastern Europe more broadly.”

Martynas Samulionis, STAFF II’s Managing Partner, added: “Investors increasingly want their capital to bring not only a strong financial return but also to be sustainable and integrated with an increasing comprehensive range of ESG metrics. Following this divestment success and the associated impressive returns for our investors, we intend to become one of the leading and most trusted funds in the European Union, working with sustainable, alternative investments while also creating real long-term benefits, not just for our investors but also protecting nature for future generations. This is one of the core investment philosophies for STAFF II. We look forward to announcing further developments both on fundraise closings and deal flow in the first half of 2022.”

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EQ James Culverhouse
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INVL Sustainable Timberland and Farmland Fund II (“STAFF II”) The fund was established in the second half of 2020 and is administered by Apex Group, one of Europe’s largest providers of fund services. The fund invests in sustainably managed forests and agricultural land in the Baltic Sea region and Central and Eastern Europe. It is intended for investors from EU countries. The fund operates under the laws of the Grand Duchy of Luxembourg