SG Capital Establishes €53 Million “Forest Fund”
29.03.2022
The alternative investment fund manager SG Capital Partners AIFP (“SG Capital”) has established the “Forest Fund” with an initial investment volume of €53 million, the company announced.
The fund’s primary focus will be sustainable forestry land investments in Latvia, while also considering opportunities in Lithuania and Estonia.
The initial fund size is set at €53 million, but plans are in place to gradually increase it to €100 million by attracting new investors and external financing. Current investors include Citadele Group’s investment management company “CBL Asset Management”, as well as pension funds managed by SEB and Swedbank.
SG Capital notes that, since EU regulations for sustainable forest management are still under development, significant regulatory changes are expected in the coming years. As a result, the fund will need to proactively adapt to evolving sustainability requirements.
SG Capital Chairman of the Board, Harijs Švarcs, commented:
“The idea of a forest investment fund came to us many years ago, and we are pleased that, with the support of investors and public institutions, we have successfully brought this concept to life. At a time when we are simultaneously experiencing high inflation, low interest rates, and a shift toward the green economy and sustainability, forest investments play a key role in providing stable, long-term, and inflation-protected returns for pension fund investors.”
The Financial and Capital Market Commission (FKTK) registered two SG Capital-managed closed-end alternative investment funds—SG Capital Partners Fund 2 and SG Capital Partners Sustainable Forest and Land Fund I—in September 2021.
About SG Capital
Founded in 2015, SG Capital is a licensed alternative investment fund manager in Latvia.
In addition to the sustainable forestry and land fund, SG Capital also manages the €150 million commercial real estate fund “SG Capital Partners Fund I”, whose largest assets include Skanstes City office center in Riga and the Nordo logistics park in Dreiliņi.
SG Capital’s partners are Harijs Švarcs and Pēteris Grieze.
Article: https://www.db.lv/zinas/sg-capital-izveidojis-meza-fondu-53-miljonu-eiro-apmera-507041
