US timber firm comes to Europe
Timberland Investment Resources, LLC (TIR-USA) is to establish a European business based in London.
The new entity, Timberland Investment Resources Europe, LLP (TIR-Europe), plans to provide UK and European institutional and high-net-worth investors with access to large-scale forestry investment opportunities worldwide.
The firm, co-founded by managing partners Hugh Humfrey and GianPaolo Potsios, is awaiting authorization from the UK’s Financial Services Authority. Humfrey will oversee investment strategy while Potsios head up business development and investor relations.
TIR-USA, based in Atlanta, Georgia, and Boston, Massachusetts, was founded in 2003, and now has over $750m under management. Mark Seaman, president and chief investment officer, is recognised for having helped pioneer the forestry asset class.
Forestry is attracting investors attention as a portfolio diversifier and inflation hedge. The asset class has a history of stable investment performance consisting of income and asset appreciation. It also offers flexibility from both a tax and cash flow planning standpoint.
TIR-Europe will focus on generating diversified cash flows and producing long-term asset appreciation. It will invest in Europe, the US and Latin America, and in more niche market opportunities, according to Potsios. Once approved, the firm will offer both funds and separately managed accounts.
All properties will be managed sustainably, with an emphasis on producing logs and chips for the paper, packaging, building materials and bio-fuels markets. Eventually, if the opportunity develops, the firm also hopes to invest in afforestation and reforestation projects that generate merchantable carbon credits.