Wall Street Firm Makes Wager on Carbon-Offset Forests

October 13, 2021
Oak Hill Advisors is teaming up with Bluesource to buy $500 million worth of woodlands to generate carbon offsets

The Wall Street Journal reports on the $500 million joint venture with Oak Hill Advisors, announced on October 12, 2021. Under the newly formed Bluesource Sustainable Forests Company, over 1 million acres of forest land will be targeted to purchase or co-invest in for carbon projects. This unprecedented endeavor marks the start of an evolution in forestry investments that Bluesource intends to lead in the industry.

“Oak Hill and Bluesource said their venture will look for large properties, measured in the hundreds of thousands of acres, where they can implement substantial changes in management from the previous owners, such as ending clear-cuts.”

“We view this to be an incredibly large opportunity,” said Adam Kertzner, a senior partner and portfolio manager at Oak Hill. “This transition is happening in real time and forestry assets continue to be a measurable way of removing carbon from the atmosphere. We’re excited about the ability to invest in attractive assets while also providing significant environmental benefit.”

The properties will complement the nearly 80 forest projects, over 3 million acres, from Alaska to South Carolina that we currently manage. Certain properties will be purchased directly while others will have the potential to become a co-investment alongside traditional timber managers and investors who are willing to engage in climate-oriented forestry practices over other logging methods that cause negative ecological impacts that last for generations.

Learn more about our forest carbon development work to date.

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