JP Morgan Ventures into Timber with Acquisition

JP Morgan Asset Management (JPMAM) has acquired Oregon-based forest management and timberland investment company Campbell Global.

The acquisition means JPMAM now has forestry assets in 15 US states as well as New Zealand, Australia, and Chile. The investment offering will sit within the company’s $168 billion global alternatives franchise.

The terms of the deal with Campbell Global’s parent company, BrightSphere Investment Group, were not disclosed. However, all 150 employees will be retained and Campbell Global will continue to remain headquartered in Portland, Oregon, according to a press statement.

“Investing in timberland, on behalf of institutional and high net worth 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 JPMAM CEO George Gatch.

Campbell Global has $5.3 billion in assets under management and oversees over 1.7 million acres of forest worldwide.

On the back of the acquisition, JPMAM also expects to participate in carbon offset markets as they develop, it said. Forests play an important role in carbon offset markets.

Asset managers are responding to growing investor demand for sustainable investment strategies by buying up specialist companies and units if they cannot build the expertise themselves, according to a new report from PwC.

“We believe the ESG retail investment market is currently underserved, particularly in niche subsectors, which presents an opportunity to money managers to penetrate currently untapped markets,” the consultancy said.

ExxonMobil, the largest oil and gas producer in the US, has also recognized the growing demand for carbon capture. By 2040, the oil giant believes there will be a $2 trillion market. In March, the oil giant pledged a $3 billion investment over the next five years in carbon capture and storage projects.