J.P. Morgan Asset Management is acquiring US timberland investing firm Campbell Global from the latter’s parent company BrightSphere Investment Group for an undisclosed sum, in a move to expand its alternatives offerings, and to become an active player in the carbon offset market.
Portland-based Campbell has around US$5.3 billion of assets and manages over 1.7 million acres of land worldwide. The deal is expected to close in the third quarter.
Investment offerings from Campbell will be affiliated to J.P. Morgan Asset Management’s global alternatives franchise, which currently oversees $168 billion worth of non-mainstream assets, including private equity and hedge funds, the US asset manager says in a statement on June 21.
“Carbon sequestration in forests worldwide will play an important role in carbon markets, and J.P. Morgan Asset Management expects to become an active participant in carbon offset markets as they develop,” the company says.
According to UK alternatives investment specialist Gresham House, global timber consumption is estimated to increase to 5.8 billion cubic metres by 2050, 2.7 times more than in 2018, or a growth rate of 3.1% per annum, due to urbanisation and housing demand.
Gresham House says rationalisation of timber consumption is important because long-lived timber products or buildings are effective for carbon sequestration.
“This acquisition expands our alternatives offering and demonstrates our desire to integrate sustainability into our business in a way that is meaningful,” J.P. Morgan Asset Management Chief Executive Officer George Gatch says in the statement.
New York-based J.P. Morgan Asset Management had $2.5 trillion of total assets as of March 2021.
Boston-based BrightSphere Investment Group currently manages over $140 billion of assets.