About This Fund
Australia New Zealand Forest Fund 2 (ANZFF2) is a timberland and real assets fund managed by New Forests Asset Management, a specialist sustainable real assets investment manager founded in 2005 and headquartered in Sydney, Australia. ANZFF2 is one of New Forests' flagship Australia-New Zealand investment vehicles and focuses on the acquisition and active management of large-scale productive forest plantations and related assets across Australia and New Zealand. The fund was established to provide institutional investors with long-duration, inflation-linked returns from sustainable timber and land management in two of the Asia Pacific region's most ecologically significant forestry markets.
ANZFF2 employs a core real assets strategy centred on acquiring freehold or long-term leasehold eucalyptus and pine timber plantations in Australia and New Zealand, alongside associated processing facilities, infrastructure, and carbon-generating opportunities. The fund's investment thesis integrates multiple revenue streams: timber harvesting revenues form the primary return driver, while carbon sequestration credits, biodiversity certificates, and land management activities provide complementary income and contribute to the fund's sustainability objectives. This multi-revenue approach creates diversified cash flows that are relatively resilient to commodity price cycles while generating measurable environmental co-benefits.
Launched with a 2014 vintage, ANZFF2 raised approximately A$660 million at final close, making it one of the largest dedicated timberland funds in the Asia Pacific region at the time. The fund attracted a diversified group of six institutional limited partners, including Swedish national pension fund Andra AP-fonden (AP2). A landmark investment was the acquisition of a 175,000-hectare freehold estate comprising more than 100,000 hectares of high-quality timber plantations across Australia and New Zealand. New Forests' Australia-New Zealand platform, of which ANZFF2 is a central component, has since grown to collectively manage A$4.67 billion across four successive vehicles.