SLM Partners Secured $167 Million for Forestry Fund
The investment targets European continuous cover forestry projects to enhance forest resilience and carbon capture.
Updated on Oct. 13, 2026 in Agriculture
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Asset manager SLM Partners has closed its Silva Fund II after securing $167 million from Dutch pension investor APG. The capital will support the expansion of continuous cover forestry management across Ireland and other European markets.
Why it matters
Continuous cover forestry is gaining institutional favor due to its ability to improve forest biodiversity and soil health while providing climate resilience. This shift reflects a move toward more sustainable management practices as operators face increasing pressure to improve carbon capture capabilities.
SLM Partners secured $167 million (equivalent to €150 million) from APG, which currently oversees more than $700 million in assets. While 67% of the forest area in Fund I has transitioned to continuous cover management, only 22% to 30% of total European forests currently utilize this approach.
The players
SLM Partners
An asset manager that specializes in managing forest and agricultural investments with a focus on sustainable land management.
APG
A major Dutch pension investor that manages assets on behalf of the pension fund ABP.
The details
Continuous cover forestry maintains canopy cover by harvesting specific sections of a forest at a time rather than clear-cutting. This management method relies on the natural regeneration of the forest, which is designed to preserve long-term soil health and carbon sequestration. SLM Partners utilizes this model to manage forest assets across Ireland with plans to scale the strategy throughout the broader European market.
Timeline
June 2026: Fund I had acquired 2,000 hectares of forest.
October 13, 2026: The fund investment was officially announced.
2030: The target year for the EU Forest Strategy.
Market Landscape
This investment aligns with the goals set out in the EU Forest Strategy, which emphasizes the need for sustainable forestry practices by 2030. The move marks an expansion of capital into a segment where roughly 22% to 30% of forests are currently under continuous cover management.
Operators in the forestry sector should monitor the expansion of continuous cover management practices as they become a benchmark for sustainability-linked capital. Firms should evaluate if their current harvesting methods meet emerging regional standards for forest resilience and carbon sequestration.
The takeaway
Sustainable management practices like continuous cover forestry are increasingly tied to large-scale institutional funding. Operators should track the evolving 2030 EU Forest Strategy guidelines as they may influence future forestry investment criteria and compliance requirements.
Further reading
For more on industry shifts and investment trends in land management, visit our Agriculture section.
Source note: This article includes information reported by AgFunderNews.
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Should forestry management prioritize environmental sustainability over traditional commercial harvesting methods?
