IWC adds value by applying rigorous investment process:
- INVESTMENT STRATEGY FORMULATION
- INVESTMENT IDEAS GENERATION
- DUE DILIGENCE
- INVESTMENT COMMITTEE (IC)
- PORTFOLIO CONSTRUCTION
- PORTFOLIO MANAGEMENT
INVESTMENT STRATEGY FORMULATION
IWC’s views on the outlook for timberland investments across regions, species and forest regimes are considered when developing a timberland strategy in combination with potential investments portfolio fit. The strategy formulation benefits from the experience of the Investment Forestry, Due Diligence and Portfolio Management investment professionals.
INVESTMENT IDEAS GENERATION
Ideas generated from our well developed network within the timberland investment industry are:
- Uniquely positioned in terms of the broad access to managers
- Superior and timely access to investment opportunities
- Work actively with investment managers to shape appropriate investment strategy propositions, often we are approached for feedback by managers pre-fundraising
By monitoring existing funds we gain valuable insight into idea generation:
- Define preferred investment characteristics for new funds
- Identify supply and demand dynamics and development in prices and returns
- Access to valuable asset level information
Investment ideas are generated from IWC’s well developed network supported by information from monitoring existing funds. IWC’s investment professionals spend substantial resources in identifying timberland investment strategies and the implementation thereof. IWC’s long standing relationship with TIMOs and timberland investors around the world supports in the sourcing of investment ideas.
IWC’s research management system provides access to significant amounts of private fund and investment data, which on an ongoing basis supports timberland portfolio construction, idea generation and due diligence.
Rigorous and consistent multi disciplinary due diligence ensures:
- Ideas can be sourced from all IWC team members
- IWC has an open door policy to investment opportunities, a due diligence manager conducts an initial assessment of all investment propositions
- Strategy review including review of forestry related investment aspects by investment foresters
- On the ground due diligence visit is compulsory
Due Diligence is primarily responsible for screening and assessing opportunities matching the timberland investment strategies of its clients. Due diligence on investment opportunities and ideas includes: an initial screening of the investment idea to review its relative attractiveness and fit with relevant mandates, and review of commercial terms. Detailed due diligence draws on multiple resources and is coordinated by a Due Diligence Manager. IWC employs a due diligence professional dedicated to evaluate the modelling capabilities of investment managers, including stress testing, the assumptions and robustness of the models and the overall appropriateness of the selected modelling framework.
INVESTMENT COMMITTEE (IC)
The IC ensures:
- structured investment selection
- resource prioritisation
- monitoring and assessment
The IC is comprised of four senior investment professionals:
- Henrik Lundqvist (Investment Committee Chairman) – Chief Investment Officer
- Johnny Vibe, CFA – Director of US Investments & Portfolio Analytics
- Lars Holm Simonsen – Director of Non-US Investments & Timber Research
- Céline Claudon – Director of Client Relations
- Thoughtful timberland portfolio construction and diversification is the key to success in private timberland
IWC strives to develop well diversified timberland portfolios taking into account pertinent views on the outlook for timberland assets by region, species and forest regimes. The size of an investment is influenced by the fit with the existing timberland portfolio and expected future timberland investments. Timberland portfolios can benefit from vintage year diversification and from comprising of primary fund investments, secondary investments and co-investments as various investment types impact capital deployment, gross-net returns, and diversification.
Portfolio management allows IWC to:
- Manages all investments undertaken
- Assesses investment performance
- Provides client reporting
Provides on-going management of clients’ timberland investment portfolios. This includes appraisal evaluations, cash flow management, property visits, sustainability reviews and financial performance analysis. Information is managed through our research management and portfolio management system and also supports investment ideas generation and portfolio construction. Portfolio management is responsible for on-going performance analysis, including assessing leverage in underlying investments, adherence to reporting requirements and policies for third party valuations and ensuring that agreed alignment of interest remains relevant during the life time of the investment.
Portfolio management supports idea generation and evaluation of new investment opportunities.