Launched by New Forests, a global investment manager of nature-based real assets, the Tropical Asia Forest Fund 2 (TAFF2) seeks to invest in sustainable plantation forests and nature-based solutions opportunities in Southeast Asia and establish a diversified portfolio for end markets such as timber, rubber, carbon, and potentially other ecosystem services.
TAFF2 employs a blended finance approach, which enables the Fund to achieve impact targets while delivering commercial returns. The Fund presents important insights including:
- The importance of involving communities to create shared interests in achieving conservation and climate objectives.
- Technical assistance funds can increase the bankability of a Fund’s underlying investments.
- Blended finance structures can be utilized to create financial returns alongside impact creation activities.
- Investment readiness can play a role in increasing the odds and flow of successful outcomes by building a pipeline of investment opportunities well in advance.
