Sydney-headquartered New Forests, a global investment manager specializing in nature-based financial strategies, has announced the final close of its Australia-New Zealand Landscapes and Forestry Fund ( ANZLAFF ) with a capital raise of approximately A$600 million ( US$372 million ).

With commitments from prominent investors across Europe and Asia-Pacific, ANZLAFF represents, the company says, a compelling new model for blended returns that combines economic gains with climate action.

The fund’s strategy is groundbreaking as it seeks not just to generate stable financial returns but also to maximize landscape value through carbon sequestration, renewable energy and biodiversity conservation.

New investors to the fund, which is aimed at integrating forestry, agriculture and carbon markets in Australia and New Zealand, include Japan’s Kyushu Electric Power. Making its first-ever foray into forestry investments, the Japanese power giant highlights the fund’s alignment with sustainability goals.

“Partnering with New Forests allows us to contribute meaningfully to global climate mitigation efforts,” notes Kenjiro Miura, chief group manager at the power company, “while securing stable returns for our shareholders.”

The investment also aligns with Japan’s broader push toward achieving carbon neutrality by 2050.

“We are particularly pleased that existing clients have re-invested with us again, while we are also excited to welcome a cohort of new clients to New Forests via this fund,” adds David Shelton, New Forests’ managing director for Australia and New Zealand. “Some of these have come from the relationship with our new owners, Nomura Asset Management and Mitsui.”