- The transaction provides direct access to Forestry sector and alignment with UN Sustainable Development Goals and Principles of Responsible Investing
- JP Morgan AM expects to become an active participant in carbon offset markets as they develop
- The acquisition does not impact current investment strategies for Campbell Global clients, all employees will be retained and it will remain headquartered in Portland
In an effort to directly impact the transition to a low-carbon economy and provide ESG-minded investment opportunities related to climate, conservation and biodiversity, JP Morgan Asset Management has acquired forest management and timberland investing company Campbell Global, LLC.
Although the terms of the deal with Campbell Global’s parent company, BrightSphere Investment Group, were not disclosed, the asset manager has stated in a press release that the acquisition does not impact current investment strategies for Campbell Global clients. It also revealed that the transaction is expected to close in the third quarter.
Campbell Global is a recognized leader in global timberland investment and natural resource management. Based in Portland, Oregon, the firm has over three decades of experience, 5.3 billion dollars in assets under management and manages over 1.7 million acres worldwide with over 150 employees. JP Morgan AM has indicated that all employees will be retained and Campbell Global will remain headquartered in Portland.
The deal will make the asset manager "a significant benefactor for thriving forests around the world", including in 15 U.S. states, New Zealand, Australia and Chile. Carbon sequestration in forests worldwide will play an important role in carbon markets, and the firm expects to become an active participant in carbon offset markets as they develop. Besides direct access to Forestry sector, the transaction will provide alignment UN Sustainable Development Goals and Principles of Responsible Investing.
“This acquisition expands our alternatives offering and demonstrates our desire to integrate sustainability into our business in a way that is meaningful. Investing in timberland, on behalf of institutional and high net wealth individuals, will allow us to apply our expertise in managing real assets to forests, which are a natural solution to many of the world’s climate, biodiversity and social challenges", said George Gatch, CEO of JP Morgan AM
John Gilleland, CEO of Campbell Global, commented that they have always held that "there should be no tradeoff" between investing wisely and investing responsibly. "We made our first institutional investment in timberland 35 years ago, have since planted over 536 million trees, and emerged as a leader in sustainable forestry. We look forward to continuing these efforts with JP Morgan. Importantly, this transaction further positions Campbell Global to serve our existing world-class clients at the highest standard", he added.
“Acquiring Campbell Global provides us with an opportunity to strengthen and diversify our ESG focus, including building a robust carbon sequestration platform,” said Anton Pil, Global Head of J.P. Morgan Global Alternatives. “Timber investing further enhances our asset class offerings in our alternatives business, ultimately passing along the unique benefits of forest management to our clients. Our knowledge of real estate and transport markets, in particular, is expected to provide opportunities to optimize the usage of timber and wood products more vertically.”
The investment offering will sit within JP Morgan’s Global Alternatives franchise, with 168 billion dollars in AUM, and will tap into the continued growth of private markets. JP Morgan is an expert in investing in real assets, with leadership positions in real estate, infrastructure, and transport and as well as private equity, private debt and hedge funds. In their opinion, Campbell Global adds to this portfolio, filling an asset class gap in an attractive market while also supporting sustainability goals.