J.P. Morgan Asset Management has announced the successful close of Campbell Global’s Forest & Climate Solutions Fund II, securing US$1.5 billion in capital, well above its initial US$1 billion target.

The total capital raise reaches US$2.3 billion when additional commitments from separate account mandates are included, according to the asset manager.

Campbell Global, the timberland investment firm acquired by J.P. Morgan in 2021, launched the fund in 2022. It focuses on sustainably managed forestland across member countries of the Organization for Economic Co-operation and Development, combining traditional timber production with carbon sequestration.

The fund’s blended strategy, the asset manager notes, aims to deliver financial returns while generating environmental benefits, such as carbon removal, biodiversity conservation and water protection.

The capital raise attracted a diverse investor base, including US institutions, international banks, European pensions, insurers and asset managers. It currently holds three timberland properties totalling approximately 212,000 acres across the US Pacific Northwest and South.

All properties are sustainably managed and certified under the Sustainable Forestry Initiative standards. The fund, the asset management firm points out, supports the growing demand for sustainable building materials while contributing to nature-based climate solutions.

Timberland management has historically served as an effective hedge against inflation, notes Jed Laskowitz, the asset manager’s global head of private markets and customized solutions, who emphasizes that Campbell Global is well positioned to capitalize on opportunities in the sector.

John Gilleland, Campbell Global’s CEO, adds: “The removal of carbon, protection of water, and enhancement of biodiversity and habitats encompass some of the important work we do in the forests on behalf of our investors.”