Stafford Capital Partners has announced the initial close of its carbon offset and sustainable impact strategy, with US $242m in investor commitments from UK Local Government Pension Schemes (LGPS).

The Stafford Carbon Offset Opportunity Fund received the US $242m of commitments from the LGPS funds of Essex, Leicestershire, and the City and County of Swansea.

The fund was launched in December 2022 with a US $1bn fundraising target and is expected to remain open to institutional investors during 2023.

It is classified as an Article 9 impact fund under the European Sustainable Finance Disclosure Regulation, and will look into afforestation, natural forest restoration and improved forest management projects.

The fund offers a solutions for investors aiming to offset their own emissions or act as an impact investment underpinned by commercial forestry.

It is expected to invest in around 200,000 hectares of sustainably managed timberland and generate 30 million verified carbon offsets for investors, each equivalent to one tonne of CO2.

Furthermore, the fund aims to provide a source of sustainable, low-carbon wood raw materials, and provide an investment with a negative carbon intensity profile and reporting framework that can support the broader decarbonisation of institutional investment portfolios.

“It is with great pride that we announce the initial close of the Stafford Carbon Offset Opportunity Fund, a strategy we feel can make a meaningful contribution to the environment and society,” said Stafford Capital Partners CEO, Angus Whiteley.

“We believe this fund will deliver the important combination of potential financial returns and environmental benefit that is so needed today.

“We are very grateful to the investors who have enabled us to achieve this milestone and look forward to making a meaningful contribution to their decarbonisation agenda.”

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