Two U.K. local government pension funds committed assets to a carbon offset and sustainable timberland impact strategy run by Stafford Capital Partners, bringing total assets in the strategy to $242 million and achieving the strategy's initial close.
Leicestershire County Council Pension Fund, Leicester, England, and City and County of Swansea Pension Fund, Swansea, Wales, confirmed their commitments to the Stafford Carbon Offset Opportunity Fund in the past few days, a Stafford Capital spokeswoman said.
A document published on Leicestershire's administering council website ahead of a March 3 meeting of the pension fund committee said the pension fund had committed £55 million ($66 million) to the strategy. The pension fund has already invested £139 million in Stafford Capital timberland strategies, the document said.
The allocation by Swansea was not disclosed. Spokesmen for the Swansea pension fund could not be reached for comment.
Their allocations followed a £100 million anchor commitment by Essex Pension Fund, Chelmsford, England, in November.
Stafford Capital announced the initial close of its fund Tuesday. It is targeting $1 billion and the fund is expected to remain open to institutional investors throughout this year.
The strategy is classified as Article 9 under the European Sustainable Finance Disclosure Regulation. It will invest in the establishment of new forests, natural forest restoration and improved forest management projects, operating on a global basis.