Manulife Investment Management, the global wealth and asset management division of Manulife Financial Corp. (NYSE:MFC), has closed on up to $224.5M in commitments for its forest climate closed-end fund, it said on Friday.
The Manulife Forest Climate Fund addresses climate change mitigation through sustainably managed forests where carbon sequestration is prioritized over timber production. The fund has a targeted offering of $500M.
The news comes as “the broad demand for climate change mitigation solutions can’t be understated and there is strong investor interest in strategies that may help support carbon emissions reductions and net zero commitments,” said Tom Sarno, global head of timberland investments, Manulife Investment Management.
FCF intends to use carbon credits, conservation easements, non-timber income generation strategies, and limited timber harvests to capture potential climate benefits and competitive financial returns for investors.