Domain Timber Advisors, the timberland investment division of Domain Capital Advisors, has acquired institutional timber manager Timbervest's fund management business, confirmed Stephanie Hammond, director of business development and client services at Domain Timber Advisors.
Financial terms of the deal were not disclosed.
The purchase was completed May 30 and included the acquisition of the Timbervest infrastructure and personnel responsible for managing a 530,000-acre timberland portfolio with a market value of about $1 billion across the major timber-producing regions of the U.S.
It is an asset purchase; Domain has not assumed any of Timbervest's liabilities.
In addition, the portfolio is also composed of environmental restoration projects, including mitigation and conservation banks across the U.S., with a market value of about $200 million.
All current staff members have been hired by Domain Timber Advisors and will continue with the seamless operation and management of existing assets, Ms. Hammond said.
Timbervest has faced legal troubles in the past. In August 2014, an SEC administrative law judge ruled against Timbervest and its executives in a case alleging improper fees from cross trades of land from a separate account managed for the BellSouth Corp. pension fund (now part of the $54 billion AT&T Inc. pension fund, Dallas) and a Timbervest commingled fund.
The ruling called for Timbervest officials to “cease and desist from further violations of the Advisers Act” and pay $1.9 million in disgorgement payments plus prejudgment interest.
The Securities and Exchange Commission also ruled four Timbervest principals “aided and abetted and caused Timbervest's violations.”
The former Timbervest principals will have no role in Domain Timber Advisors, Ms. Hammond said.
Domain Capital has $5.3 billion in assets under management, $1 billion of which is in Domain Timber.