Cresco Capital Services provides access to direct investments in forestry and land. We provide a full independent investment and asset management service, which includes due diligence, management, monitoring, and development of portfolios. Our investment process has been developed to support our commitment to sustainability and is aligned with international standards. Our responsible investment process is illustrated in the figure below and further described in our Responsible Investment Policy.
How We Invest
How We Invest
A Structured, Responsible Process
Sustainability Approach
Our overall principles outline how we work with sustainability and which areas we have chosen to focus our attention on. It introduces the best practices, international standards and frameworks which we are basing our work on.
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Establishment of fund and investment strategy
With our sustainability approach as the starting point, sustainability is an integrated part of our investment process. We prepare investment structures and create buying power across strategies, guided by due diligence and exclusion policies.
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Evaluation and due diligence
We assess potential forestry assets for investment with our team and local partners. Legal, environmental, and commercial standards are reviewed thoroughly before acquisition.
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Portfolio management
We actively manage assets in collaboration with local service providers, supporting sustainable forestry and land use development including afforestation and renewables.
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Exit
As the end of the investment lifetime approaches, we assist in planning and execution of a timely divestment strategy. Our continuous market presence and monitoring of market activity enables us to improve market timing, as well as contact to relevant market players at the time. We manage professional valuations, and our shared incentive structure with our clients is an assurance that we will do everything to achieve the best result for our investors.
Investment and Asset Management Services
Thorough Due Diligence and Acquisition
When entering a partnership with Cresco Capital Services, we coordinate and perform due diligence in the acquisition process. We do so in conjunction with locally and carefully selected lawyers and other relevant partners. We carry out a physical inspection on the ground with valuation of the forest and provide the necessary material for the client to make a final decision.
Portfolio Management
We always strive to compose an optimal forest portfolio for our clients. We actively manage the portfolio by optimizing all income streams with a high focus on costs. As the timber wood prices fluctuate throughout the year, we monitor the market carefully and hereby aim to optimize the timing of selling timber and wood products. However, we do not limit ourselves to forestry. We also identify and keep track of non-wood development opportunities on the property..
Transparent Setup
Investments are organized in a transparent setup with frequent reporting to all investors. We have direct contact with the carefully appointed local partners and subcontractors to make sure that we receive all relevant information. We always do so to improve and optimize the portfolio and to ensure stable and robust risk-adjusted returns.
Mutual Incentives
Through close partnerships, we provide a personal service with mutual incentives and we negotiate and optimize the contracts with local suppliers on behalf of our client.
Two Ways to Invest with Cresco
Whether you prefer pooled or direct ownership, we offer two structured and transparent investment concepts designed to align with your goals.
Alternative Investment Funds (AIFs)
Cresco Capital Services is a registered Alternative Investment Fund Manager (AIFM) with the Danish Financial Supervisory Authority. We bring together semi-professional and professional investors with an interest in forestry and pool their capital into Alternative Investment Funds (AIFs).
An Alternative Investment Fund (AIF) is a collective investment vehicle that raises capital from a number of investors with the aim of investing according to a defined investment strategy. A board of directors is established with selected individuals from the group of investors, that is involved in the management on a regular basis. All investors are involved annually at the general assembly.
As the investment and asset manager, Cresco engages with best-in-class lawyers and auditors to prepare all legal agreements and investment structures. Following fund establishment, Cresco manages the investment process according to the investment strategy and long-term asset management, which includes budgeting, planning and execution of operations, reporting and compliance, etc.
Exclusive Investments
Cresco also offers private investors (typically through their own holding companies) and institutional investors the opportunity to invest directly in forest properties outside of a fund structure.
A key advantage for holding companies is that forestry qualifies for succession planning benefits. As such, investing in forests may offer tax advantages for holding companies undergoing succession. Investors are strongly advised to seek individual advice from their own tax advisors.
Throughout the investment, Cresco works in a close partnership with regular dialogues with the investors and Cresco manages the investment process according to the single investor’s goals and strategies.
