Sustainable timber fund gains €30m backing from EIB

London, 25 June: Dasos Capital’s private equity timber fund has made its first close of €85 million ($119 million), following a pledge of €30 million from the European Investment Bank (EIB).

The Dasos Timberland Fund I is targeting timberland investments globally, with an emphasis on the 27 EU member states and Croatia, an EU accession country. It aims to make a commercial return from its investments as well as bring environmental benefits by investing in sustainable forestry projects.

Simon Brooks, EIB vice-president responsible for the Bank’s environmental activities, said: “The EIB places great importance on strengthening and diversifying our approach to environmental protection. Investment in the Dasos Timberland fund is somewhat of a trailblazer operation for us at the Bank. It is the first time we have ever invested in a timberland fund and we are confident that it will act as a catalyst for the creation of further opportunities in this area.”

The €85 million first close includes only €17 million from the EIB, which will top up its investment to €30 million as the fund grows, said Petri Kuusisto, senior partner at Finland-based Dasos Capital.

Finnish pension fund Ilmarinen has invested €17 million, Kuusisto said, and other investors in the Dasos fund include pension funds, endowment funds and family offices from all over Europe.