BNP Paribas Asset Management (BNPP AM) declared that it has acquired a controlling stake in natural resources investment expert International Woodland Company (IWC) in an effort to expand its sustainability-focused private investment solutions.
According to BNPP AM, the acquisition comes at a time when the company is observing a rise in client interest in forestry investments as an asset class, due to characteristics such as attractive risk/return and inflation protection profiles, exposure to sustainability features such as the potential for carbon capture and conservation projects, and benefits such as biodiversity preservation and water management.
IWC, based in Copenhagen and founded in 1991 with a concentration on forestry investments, provides investment management and advisory services within sustainable timberland investments, agriculture investments, and ecosystem services, including carbon credits and conservation projects, with $5.5 billion in assets under management or advice.
CEO of IWC, Otto Reventlow, stated:
"We believe that wood is the material of choice in a carbon-neutral society, and that agricultural agriculture is on the route to delivering sustainable proteins to the global citizenry. This agreement will allow IWC to expand its distribution reach and increase its resources on sustainability and the EU taxonomy, which will help our existing and prospective clients."
The transaction follows the announcement earlier this year of BNPP AM's 2025 strategic ambitions, which are primarily focused on extending its sustainable investing capabilities and offerings, with the aim of becoming "the sustainable asset manager of reference in Europe." The firm stated that the acquisition is part of the expansion of its sustainable investment offerings and the growth of its private markets investment platform.
David Vaillant, BNPP AM Executive Committee Member, stated:
Our investment in IWC is totally consistent with our aim to be a leading sustainable asset manager, to be forward-thinking on sustainability-related subjects with our clients, and to strengthen our focus on sustainable investing methods, particularly in private markets.
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