About This Fund
The New Forests Tropical Asia Forest Fund 2 (TAFF2) is a closed-ended institutional impact fund managed by New Forests Asset Management, a global specialist in sustainable land-use and forestry investment. TAFF2 is the successor to the firm's inaugural Tropical Asia Forest Fund, which raised USD 170 million in 2012, and continues New Forests' mission of generating long-term financial returns while advancing environmental and social outcomes across tropical forest landscapes in Southeast Asia.
TAFF2 invests in sustainable plantation forestry, natural forest conservation, and nature-based climate solutions across tropical Southeast Asia. The fund employs a blended finance structure designed to channel institutional capital into conservation outcomes that would otherwise remain underfunded, combining traditional timber revenue streams with carbon markets, biodiversity credits, and impact-linked financing. Investments target high-biodiversity jurisdictions across the region, including areas suitable for responsible timber production alongside ecosystem restoration and community benefit-sharing arrangements.
TAFF2 achieved a first close of USD 120 million in 2023 and a final close of USD 130 million in January 2024, below its initial USD 300 million target, reflecting a challenging fundraising environment for niche real assets strategies. Anchor investors include Mitsui and Nomura, two leading Japanese institutional groups whose participation underscores growing demand for nature-based solutions in Asian capital markets. TAFF2 brings New Forests' total assets under management to more than USD 9 billion globally across forestry, conservation, and sustainable agriculture mandates.