Last month Peter Bartlett’s Exotix Limited secured financing for UK-based New Forests Company’s sustainable forestry operation in Uganda.  The New Forests Company is a plantation timber firm with operations in Uganda and Mozambique.  It has become the largest tree planter in Uganda and expects to plant almost 4.5 million trees this year. The company combines sustainable commercial forestry and the protection and promotion of biodiversity with community participation.  Commenting on the deal, Exotix’s Sanjeev Chhugani said, “Early stage forestry businesses have low cash flows in the initial years, but once the trees reach a certain age, the picture changes dramatically. Not only do the assets literally grow, so does the holding value of these assets. With increasing global demand for timber, investing in sustainable forests is essential. New Forests’ impact on the surrounding communities will be phenomenal. While many of our alternative investment clients are focused on assets that can be marked to market on a short term basis, we had to find a strong investor with a long term outlook, a passion for Africa and a pragmatic approach to ‘green’ investments. Money can grow on trees.”

Julian Ozanne, CEO of New Forests, commented that “with our institutional round of funding concluded, we can focus on planting more trees and extending our biodiversity and community development initiatives. We have a solid team of very experienced and passionate people who are extremely knowledgeable about forestry and are committed to successfully and profitably expanding our operation within Uganda and across Africa.”