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Evli Impact Forest Fund II Ky
Evli Impact Forest Fund II Ky is a Finnish-domiciled impact forestry fund marketed by Evli Fund Management Company Ltd, the Helsinki-based asset manager...
Evli Impact Forest Fund II Ky
Evli Impact Forest Fund II Ky is a Finnish-domiciled impact forestry fund marketed by Evli Fund Management Company Ltd, the Helsinki-based asset manager that has built a specialized natural-capital platform for European institutional investors. The fund was structured as a successor to Evli's earlier timberland vehicle, continuing a strategy that commits capital exclusively to fund managers acquiring and sustainably operating forest properties in Nordic and Baltic markets. These regions house some of Europe's most productive coniferous forest stands, and the fund positions itself against both inflation and public equity beta by owning a physical, growing biological asset. The fund's investment program spans forestry fund commitments, co-investments in timberland acquisitions, and secondary purchases of mature forest-fund stakes, targeting a net internal rate of return derived from three distinct yield components: biological tree growth, land appreciation, and rising carbon-credit revenues. Underlying managers must satisfy environmental criteria including Forest Stewardship Council (FSC) certification, a binding commitment to enhanced biodiversity outcomes, and a prohibition on land conversion. The geographic focus concentrates on Finland, Sweden, Estonia, Latvia, and Lithuania — countries where secure property rights, established forest-management infrastructure, and transparent timber markets support institutional-scale deployment. Portfolio assets produce sawlogs, pulpwood, and increasingly verified carbon units, sold to European mills and voluntary carbon markets. Evli acts as gatekeeper and impact monitor, not as a direct forest operator. Evli Fund Management Company, the regulated management company behind the vehicle, is a subsidiary of Evli Plc, a Nordic wealth and asset manager listed on Nasdaq Helsinki with roughly €18 billion in total client assets across its group. The firm runs dedicated forestry and natural-capital teams alongside its traditional equity, fixed-income, and private-asset units. In May 2024, Evli Plc announced that the second vintage of its impact forest program had closed with commitments exceeding the target set at launch, signaling sustained demand from European pension funds and family offices for uncorrelated green-asset exposure (per the firm, May 2024). The fund's structure as a Finnish limited partnership with an Alternative Investment Fund Manager (AIFM) license keeps it within Europe's harmonized regulatory framework. What separates this vehicle from generic forestry ETFs or listed timber REITs is its legally mandated impact overlay: the fund documents require every underlying manager to deliver quantifiable biodiversity indicators alongside financial returns, and the management company retains authority to withhold capital calls from managers that fail environmental audits. This binding mechanism converts the fund from a passive resource play into an active governance structure — a configuration that remains uncommon in European timberland investing, where most pooled vehicles prioritize volume certification over measurable ecological improvement.
General information
Firm type
Generic
Year founded
—
AUM
Undisclosed
Location
Region
Europe
Country
Finland
City
Helsinki
Corporate office
Helsinki, Finland
Sector focus
Frequently asked questions
How does the fund source its underlying forestry managers?
Evli's natural-capital team draws on proprietary relationships with Nordic timberland operators developed through its earlier forest-fund vintages. The team screens for managers with existing operational footprints in Finland, Sweden, Estonia, Latvia, and Lithuania that own or control significant standing timber inventories. Managers are evaluated against both financial track records and their capacity to meet the fund's environmental mandates, including FSC group certification and biodiversity monitoring protocols.
What is the fund's approach to carbon credit generation?
The fund treats carbon revenues as a supplemental yield stream rather than the primary investment thesis. Underlying managers are expected to certify some portion of their standing forest for voluntary carbon credits, but the core return driver remains biological tree growth and timber sales. This approach limits exposure to the pricing volatility and regulatory uncertainty that plague pure-play carbon-credit strategies, while still capturing upside from long-term carbon-market maturation.
Is the vehicle open to non-Nordic investors?
Yes. Evli markets the Impact Forest Fund II to institutional investors across Europe, including pension funds, insurance companies, and family offices. The fund is structured as a Finnish limited partnership under the AIFMD regime, which enables passported distribution to professional investors throughout the European Economic Area. Non-European investors may access the vehicle subject to their local private-placement regimes.
How does the fund enforce its biodiversity and FSC mandates?
The fund's limited partnership agreement includes affirmative covenants requiring each underlying manager to maintain FSC certification on all controlled forestland and to report annually on a defined set of biodiversity indicators. Evli retains the right to suspend new capital calls and, in material breach scenarios, to replace a non-compliant manager. An external environmental consultant audits the biodiversity reporting, and summary results are included in investor communications.
What is the relationship between Evli Impact Forest Fund II Ky and the listed Evli Plc?
Evli Fund Management Company Ltd, which structures and manages the Impact Forest Fund II, is a wholly owned subsidiary of Evli Plc, the Nordic asset manager listed on Nasdaq Helsinki. Evli Plc's balance-sheet strength provides the fund with operational infrastructure and regulatory sponsorship, but the fund's assets are held in a separate limited-partnership structure and are not consolidated onto Evli Plc's balance sheet.
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