SLM Partners invests €150m in European forestry on behalf of Dutch pension fund ABP

Commitment made on behalf of pension fund ABP anchors the first and final close of SLM Silva Fund II, which will scale continuous cover forestry across Europe.

(London, 13 October 2026) SLM Partners, the specialist natural real assets manager, has secured a €150 million commitment from pension investor APG on behalf of pension fund ABP for SLM Silva Fund II. The commitment anchors the fund’s first and final close.

SLM Silva Fund II will invest in forests across Europe using Continuous Cover Forestry (CCF), a regenerative management approach that maintains permanent forest cover through selective harvesting.

The fund builds on SLM Silva Fund I, launched in 2018 to acquire conventionally managed forests in Ireland and transition them to CCF. As of June 2026, Fund I had acquired 2,000 hectares, with 67% of its forest area transitioned to CCF management. Fund II will continue investing in Ireland and expand the strategy across a wider range of European forest ecosystems and geographies.

“European forestry, with a focus on CCF and afforestation, can play an important role in supporting ABP’s climate and biodiversity ambitions while generating attractive long-term returns” said Andrey Gushchin, Senior Portfolio Manager in APG’s Private Natural Capital team.

Under CCF, trees are harvested selectively through regular thinnings, allowing the forest to regenerate naturally and develop a more diverse, natural structure over time.

The approach is gaining policy momentum as evidence of its economic and environmental benefits grows. The New EU Forest Strategy for 2030 highlights CCF as an approach to protect and restore biodiversity, increase carbon storage and strengthen resilience to climate extremes.

“SLM Partners’ expertise and experience in CCF management were clear differentiators throughout our investment decision,” Andrey Gushchin added.

According to SLM Partners’ experience and research, CCF can also offer distinct economic advantages. Regular, selective harvests bring cash flows forward and reduce exposure to timber-price volatility. Active management can improve timber quality and produce larger, more valuable trees, while natural regeneration can reduce or avoid replanting costs. Together, these features can support attractive risk-adjusted returns while enhancing the resilience of forest assets.

SLM Partners’ white paper Investing in Continuous Cover Forestry in Europe examines these advantages in more detail, drawing on recent studies and its investment experience in Ireland.

Beyond the economic case, SLM believes CCF has significant environmental impact potential. By creating more complex, diverse and uneven-aged forests that more closely resemble natural forests, CCF has the potential to contribute to carbon storage, biodiversity and resilience to climate change.

“We are delighted to partner with APG, whose long-term perspective and commitment to measurable impact are closely aligned with this strategy,” said Darius Sarshar, Principal at SLM Partners. “In forestry, our model combines established practices such as Continuous Cover Forestry with rigorous investment discipline and impact measurement. APG’s commitment reflects growing institutional interest in forestry strategies that seek to combine attractive financial outcomes with measurable environmental benefits, which can help accelerate the transition to more resilient, biodiverse and productive forests across Europe.”

Only an estimated 22–30% of European forests are currently managed under CCF. APG’s commitment supports the continued expansion of CCF practices across Europe and contributes to the transition towards more sustainable forest management.

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 About ABP and APG

ABP is the pension fund for government and education employees in the Netherlands, serving 3.2 million participants. ABP’s pension scheme and assets are managed by pension services provider APG. APG manages EUR 639 billion in assets (June 2026) on behalf of its pension fund clients. Together, ABP and APG work to provide participants with a good pension in a livable world.

 About SLM Partners

Founded in 2009, SLM Partners is a specialist real assets manager investing in agriculture and forestry. With $825 million in assets under management, SLM Partners manages funds and separate accounts for institutional investors and family offices. Its investment programmes span Europe, the United States and Australia.

SLM Partners invests directly in land and partners with skilled local operators to build regenerative, resilient and profitable land systems. Its strategies combine the investment benefits of natural real assets - portfolio diversification, income yield and inflation protection - with positive outcomes for soil health, water, biodiversity, carbon sequestration and local communities.

SLM won the Pension 4 Purpose Content Award for its CCF white paper in 2025, the Environmental Finance Impact Award in 2024 and Real Assets Manager of the Year award in 2023.