King & Wood Mallesons (KWM) has advised New Forests, a global investment manager of nature-based real assets and natural capital strategies, on the capital raising for its Tropical Asia Forest Fund 2 (TAFF2), which achieved its final close in December 2023.
TAFF2 is New Forests second Asia forestry fund dedicated to investing in sustainable forestry and conservation nature-based solutions projects in tropical Southeast Asia, managed by New Forests Asia (Singapore) Pte Ltd.
The closed-ended institutional fund aims to capitalise on the long-term investment opportunities in sustainable plantation forestry and conservation nature-based solutions projects in Southeast Asia.
The KWM team draws on cross-border fundraising expertise and was led by Partner, John Sullivan together with Special Counsel, Sharon Travers and Solicitor, Marcela Malicka.
KWM’s role as fund counsel included co-ordinating with Singapore counsel and tax advisers and assisting New Forests with fund documentation and negotiations with a diverse set of investors from Asia, Europe and the United States.
Commenting on the deal, Special Counsel, Sharon Travers said:
“TAFF2 is an innovative product which seeks to mobilise capital towards social and environmental outcomes in Southeast Asia.”
Partner, John Sullivan said:
“We’re proud to have been able to assist New Forests with TAFF2. Natural capital strategies are well aligned with the ongoing investor focus on ESG and sustainability, and we expect to see more in the years to come.”
TAFF2 is expected to develop a diversified portfolio of sustainable forest plantation assets in Malaysia, Indonesia, Vietnam, Thailand, Laos and Cambodia for end markets such as timber, rubber and carbon.
TAFF2 has a novel ‘impact investing’ component that utilises a blended finance structure. The blended finance structure is designed to contribute to climate action mitigation, community engagement and livelihoods, and biodiversity conservation as part of TAFF2’s investment thesis.
KWM looks forward to continuing to support New Forests with its natural capital strategies.
