What We Do
We are an impact investment manager of nature-based assets, providing climate and biodiversity solutions.
We can tailor investment strategies to fit investors needs thanks to our holistic management approach and vertical integration: investment, asset and property management.
Investment Management
Our main objective at AF is to provide comprehensive solutions to institutional investors, our investment management covers from sourcing, screening assets and due diligence to portfolio construction and responsible exit strategy.
Sourcing, due diligence and raise of funds
AF has researched over 1,050,000 ha of existing and potential forestry and agroforestry properties in the Region on behalf of itself and its clients. All properties that do not meet ESG criteria have been screened out.
AF has a solid track record, in addition to participating in more than 80 transactions with Due Diligence, a process that has been executed on more than 550,000 hectares, and acquisition of more than 190,000 timberland hectares.
This facilitates our sourcing and screening process and grants access to a wider pool of assets.
Portfolio construction and Nature-based Investment Vehicles
AF has a vast expertise in portfolio construction having aggregated more than 37 single properties.
Assets can be individually selected with specific parameters to achieve investor profiles. Site picking in different geographic locations allows for portfolio diversification and optimization.
AF offers different investment vehicles to institutional investors interested in investing and accessing the nature-based asset class: i) open-ended funds, ii) closed-ended or commingled funds, iii) separate accounts, iv) club deals or co-investments. These last two provide direct ownership of the assets.
Responsible Exit strategy
- Focusing on finding follow-on impact investors, who are philosophically aligned with the business model and recognize the value proposition.
- We manage assets considering the needs of future buyers and remain open to adapt the strategy to changing circumstances.
- In the case of exotic plantation projects, all harvested areas are replanted. For conservation and reforestation projects we lean towards recreational buyers, conservation easements or promoting the area to be transformed into a national reserve.
Property Management
In-house Property Management as the foundation of this business preserves the land, drives sustainable development and provides scalability to investors.
Our forest management is focused on high-quality sawlogs, increasing carbon capture and preserving biodiversity and ecosystems . These require greater dedication and employing management techniques appropriate to specific forest types and sites that includes:
- Continuous strategic landscape planning with best-in-class tech solutions to ensure value creation through biological growth.
- Tree care operations to reduce fire and disease risks.
- Longer rotations (time between planting and harvest) to promote productivity and forest resilience.
- Selective harvesting for better logs and increasing retention (trees remaining on the landscape after harvest) for habitat conservation.
This is compounded by optimizing log production to the most freight-economical customer delivery points and actively marketing logs to develop new export markets, gain insight into market dynamics and industry trends, and increase revenues.
Asset
Management
AF is committed to making a positive and durable social and environmental impact with a view to enhance returns and mitigate risks over the medium to long term.
We have a team that prepares all the necessary documentation for the FSC®, ISO and Verra certification processes. Besides, accounting and back-office are done in-house.
Ongoing monitoring and management as well as stakeholder engagement is crucial to achieve this. As part of our asset management proposition:
- We perform financial and risk analysis and impact measurement and management.
- We encourage investors’ active participation in order to realize the shared vision for growth in financial returns and impact.
- Our strong reporting systems provide transparency in our activities and include quarterly and annual operating and financial reports, regular portfolio reviews, and valuation reports.
