London, UK – Stafford Capital Partners has launched a new $1.2 billion timber fund, consolidating assets from three existing timber funds, with the aim of generating a cash yield of at least 8%. The Stafford International Timberland Continuation Fund will operate as a perpetual fund, retaining almost three-quarters of existing investors and attracting strong institutional demand for timberland as a strategic asset.

The fund includes 74 assets from Stafford International Timberland (SIT) funds VI, VII, and VIII, covering approximately 6.3 million acres of commercial timberland across the United States, New Zealand, Australia, and Latin America. Rather than pursuing new acquisitions, the fund plans to gradually sell down about 28% of its assets over the coming decade to maintain a targeted cash yield.

Investor Support and Structure

Approximately 73% of existing SIT investors rolled over their investment into the new fund, while fresh capital accounts for the remaining 27%. The largest backers are a group of UK Local Government Pension Funds, representing 54% of the fund’s total commitments.

Stafford CEO Angus Whiteley highlighted the launch as a continuation of strong institutional interest in timberland:

“The establishment of the Continuation Fund follows closely behind our $1 billion close of SIT X, our tenth core timberland fund. We believe this further signals growing momentum and institutional interest in timberland as a strategic asset class.”

Continuation funds allow managers to retain assets beyond the life of the original fund, maintaining exposure to strong performers and avoiding the need to sell at unfavorable market prices.

Strategic Outlook

The fund is designed to deliver stable cash flows and long-term returns, with an expected cash yield above 8% over the next ten years. It reflects the growing trend among institutional investors seeking alternative assets such as timberland, which can provide inflation protection, portfolio diversification, and sustainable investment opportunities.

The new fund underscores Stafford Capital’s role as a major player in global timberland investment, leveraging decades of experience and a geographically diverse portfolio to meet growing demand from pension funds, endowments, and other institutional investors.