LG advises on $50 million forest fundraising
16 April 2008
The investment funds team at law firm LG has advised The Forest Fund Limited (“The Forest Fund”) in relation to its establishment and pre-IPO fundraising of $50 million.
The Forest Fund is a Guernsey incorporated company established to provide shareholders with capital growth combined with a low risk profile through investing in new plantations, trees, timberland and timber related assets globally (but with a primary focus on Australia, Brazil, Chile, New Zealand and Uruguay).
The Forest Fund has closed its initial pre-IPO fundraising at its targeted amount of $50 million from a combination of institutional investors and family offices. Shareholders include a number of significant Finnish and Swedish institutional investors. The company is currently unquoted but intends to seek a listing by early 2009 following the deployment its initial capital.
The LG team advising The Forest Fund consisted of corporate finance partner Nick Heather and corporate associate John Reed.
Nick Heather said: “We have worked with The Forest Fund since its inception and are glad to have been involved in the successful launch of this exciting new product. Forestry and timberland assets have very interesting dynamics and return profiles which in the current turbulent markets should prove attractive for long term value investors. The closing of this fund raising is a great endorsement of the value attached to the experience of the Timber Capital team. We look forward to working with the company over the coming months in preparation for its planned flotation."
The Forest Fund has appointed Timber Capital Ltd. as its investment manager. Timber Capital is a new asset management venture headed up by J. Harald Orneberg former founder and vice chairman of hedge fund manager ORN Capital.
In addition, The Forest Fund board of directors includes Dr. Dermot Smurfit former joint deputy chairman of Jefferson Smurfit Group PLC. and current chairman of AIM quoted Powerflute Oyj.
Notes to editors:
- LG advises entrepreneurial and growth market clients seeking to raise capital for their business ventures. It has advised on over 250 AIM transactions raising more than £3.6 billion in new funds.
- LG is the top AIM legal adviser and top adviser to the Financial sector by client market capitalisation, according to the latest Hemscott AIM Advisers Rankings Guide.
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Nick Heather
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