UB closes the UB Nordic Forest Fund III due to high capital inflows

United Bankers Plc

PRESS RELEASE 22 April 2021 at 3 p.m.

UB Nordic Forest Fund III attracts new capital commitments of over EUR 50 million – UB has decided to close the Fund


Investor interest in United Bankers’ forestry investment solutions has continued extremely strong. In its closing of 15 April 2021, the company’s forest fund UB Nordic Forest Fund III Ky obtained new capital commitments worth of EUR 50.9 million. As a result of the completed fundraising round, the fund has attained the size of EUR 111.45 million. The general partner of the fund is United Bankers Plc’s subsidiary UB Nordic Forest Management Ltd, whose Board of Directors has today resolved to close UB Nordic Forest Fund III for new investments, after the aggregate capital commitments into the fund exceeded the target size set for the fund of EUR 100 million.


UB Nordic Forest Fund III is a private equity fund aimed at professional investors, established at the end of 2018, investing in forest properties in Finland and the Baltics. The fund offers investors a geographically well diversified forest property portfolio, generating stable return that is independent of economic cycles. The forests in the fund are professionally and sustainably managed, ensuring the economic, social and ecological sustainability of the forests. All of the forests in the fund have been certified in accordance with the country-specific practices.


The investment activities of UB Nordic Forest Fund III have progressed as planned. The fund owns forest properties in Finland, Estonia and Latvia, with their current total surface area being close to 20 000 hectares. This year, the fund has carried out its first real estate acquisitions also in Lithuania. With the new capital raised in the fundraising, the fund will be solidifying its market position in the forest property markets of the Baltic Sea region even further by continuing to acquire properties suitable for its investment policy within the target area.


”The forest property market of the coastal states of the Baltic Sea presents an interesting investment object for the investor, because the area has a strong basic forest industry and a functioning infrastructure. The Baltic Sea region is also internationally renowned as the forerunner in the development and productization of new wood-based products. Indeed, the use of wood is anticipated to experience significant growth in the future, and the timber market is expected to become further integrated”, says Jyri Hietala, CEO of UB Nordic Forest Management Ltd.


United Bankers has three funds investing in forest properties: UB Timberland Fund (AIF), as well as the UB Nordic Forest Fund II and III Ky private equity funds. At the end of 2020, the capitals of the forest funds amounted to the total of approximately EUR 435.0 million. The surface area of the properties owned by the funds in Finland and the Baltics is currently over 120 000 hectares. As a result, via its forest funds, United Bankers is one of Finland’s largest forest owners. The objective is to actively increase the amount of forest assets under management in 2021 in all of the markets in which United Bankers’ forest funds operate.


”Today, United Bankers is a leading Nordic forest fund house that has over the years build the base for its strong standing in forest investment products. The result of UB Nordic Forest Fund III’s fundraising round was excellent, and as a result, the target size of EUR 100 million set for the fund was exceeded. This success also speaks to investors’ reliance on the expertise of our company, and is also the best possible reward for all the efforts we have exerted. We will strive to continue to respond to the strong demand for forest investing also going forward by exploring possibilities to expand the geographical target market territory of the forest assets and by introducing novel, alternative, ways of investing in forest and in the forestry sector” sums up Patrick Anderson, CEO of United Bankers Plc.


UB Nordic Forest Fund III forms part of United Bankers’ fund selection focused on real asset investments, consisting of funds investing in real estate and forest properties, as well as in the shares of real estate and infrastructure companies. The Group’s assets under management at the end of 2020 amounted to approximately EUR 3.8 billion, close to 40 per cent of which were invested in real asset objects.


For further information:

Patrick Anderson, CEO, United Bankers Plc

Email: patrick.anderson@unitedbankers.fi

Phone: +358 400 244 544, +358 9 25 380 236


Jyri Hietala, CEO, UB Nordic Forest Management Ltd

Email: jyri.hietala@unitedbankers.fi

Phone: +358 40 359 3566


United Bankers in brief:

United Bankers Plc is a Finnish expert on asset management and investment markets, established in 1986. United Bankers Group’s business segments include asset management and capital markets services. In asset management, the Group specializes in real asset investments. United Bankers Plc is majority-owned by its key personnel and the Group employs 129 employees (FTE) and 35 agents (31 December 2020). In 2020, the United Bankers Group’s revenue totalled EUR 34.4 million and its adjusted operating profit amounted to EUR 8.6 million (IFRS). The Group’s managed assets amount to approximately EUR 3.8 billion (31 December 2020). United Bankers Plc’s shares are listed on the Nasdaq Helsinki Stock Exchange List. The Group companies are subject to oversight by the Finnish Financial Supervisory Authority. For further information on United Bankers Group, please visit www.unitedbankers.fi.