Forestland Acquisitions NEWS
April 12, 2022
Bluesource Sustainable Forests Co. (Joint Venture between Bluesource and Oak Hill Advisors) Acquires 52,000-acre Adirondack Forestland
The following information was first published by Bluesource on April 12, 2022 prior to the launch of Anew.
Purchase marks BSFC’s first acquisition since its formation in October 2021, backed by $500 million of capital committed by OHA and its investors.
Salt Lake City, UT: Bluesource Sustainable Forests Co. (“BSFC”), a joint venture between Oak Hill Advisors, L.P. (“OHA”) and Bluesource, has purchased 52,000 acres in upstate New York. This purchase marks BSFC’s first acquisition since its formation in October 2021, backed by $500 million of capital committed by OHA and its investors. Bluesource, North America’s most experienced and most diversified corporate climate advisor, and OHA, a leading alternative investment firm with $57 billion in assets, are partnering on strategic forestry investments. This initiative is set to lead the timber industry by example, supporting climate mitigation efforts through sustainable working forest management.
The Adirondack properties were publicly listed for sale, identified by BSFC as an area of interest, and targeted immediately following the formation of the joint venture.
The acquired forestland is in Oneida, Lewis, and Herkimer counties in upstate New York, and will add to the nearly 80 North American forest carbon projects covering over three million acres that Bluesource currently manages in partnership with landowners. Decades of forestry experience is informing management of the land to balance carbon sequestration as well as overall forest health. In addition, selective logging will allow these forests to continue to support the local economy as working forestland that will produce high value forest products.
BSFC, which is part of the recently merged entity of Bluesource and Element Markets announced in February 2022, will continue to target forestland where selective harvest can prioritize and balance critical carbon capture while maintaining sustainable forest products that local and national communities need to survive and thrive. While the Adirondack lands have been purchased directly, other future purchases 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 long-lasting negative ecological impacts. These investments may take the form of joint ownership, acquisition of timber deeds, or portfolio acquisitions.
“These are the kinds of forests that Bluesource Sustainable Forests Company was created to own and manage,” said Jamie Houston, recently named President of BSFC. “Forests with an abundant carbon resource and high value forest products can be challenging to manage solely for one resource or the other. We believe we can unlock substantial value by managing these complicated assets in a thoughtful and sustainable manner for carbon, while selectively managing the timber for the long-term health of the forest.”
Cakey Worthington has been named Director of Operations. Aaron Paul, former Director of Forest Carbon Origination for Bluesource, has been appointed BSFC Vice President. The team is slated for additional growth over 2022, and BSFC will be targeting talented individuals who are driven to sustainably manage timberlands for carbon and forestry initiatives.
“Bluesource Sustainable Forests Company was created to be a leader in investing in nature-based solutions,” said David Light of OHA. “BSFC’s combination of expertise in the carbon and forestry markets, with flexible capital and structuring expertise, positions us well to acquire a variety of timberlands and manage them in a sustainable manner that promotes carbon sequestration while creating substantial value for our investors.”
In February of 2022, Bluesource and Element Markets announced a merger to form a combined entity under majority ownership by TPG Rise, a global impact investing platform managed by alternative asset firm TPG. The combination brings together Element Markets’ leading position in low carbon fuels and greenhouse gas markets with Bluesource’s expertise in nature-based solutions, project development, capital formation and advisory services to create a vertically integrated climate-focused company that serves all sectors and geographies to accelerate the fight against climate change and environmental degradation.
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About Oak Hill Advisors
OHA is a leading alternative investment firm with $57 billion of capital under management across its private, distressed, special situations, liquid, structured credit, and real asset strategies. OHA has generated attractive risk-adjusted returns over its more than 30-year history by specializing in performing and distressed credit-related investments in North America, Europe, and other geographies. OHA employs more than 300 people globally and is headquartered in New York, with primary offices in London, Sydney, Hong Kong, Luxembourg, Fort Worth, and San Francisco.
For further information about OHA, please visit oakhilladvisors.com.
On December 29, 2021, OHA was acquired by T. Rowe Price Group Inc., a global investment management organization. OHA will operate as a standalone business within T. Rowe Price, have autonomy over its investment process, and maintain its team and culture. The acquisition, which was announced on October 28, 2021, accelerates T. Rowe Price’s expansion into alternative credit markets, complementing the firm’s existing global platform and ongoing strategic investments in its core investments and distribution capabilities.
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