BTG Pactual TIG Closes $1.24 Billion Latin American Reforestation Fund, the Largest of Its Kind on Record

Key Takeaways

• Fund closes at $1.24 billion, largest reforestation fund ever
• Targets 660,000 acres, half native forest, half commercial FSC farms
• 18 institutional investors include BNDES, IFC, New Zealand Super, Vale, Tokio Marine
• First carbon credits issued under Verra VM0047, meeting ICVCM standards
• Projected 2,700 full‑time jobs at full deployment, boosting rural economies

Pulse Analysis

The $1.24 billion capital raise by BTG Pactual TIG marks a watershed moment for nature‑based finance. Historically, reforestation projects have struggled to secure multi‑billion‑dollar commitments, but the growing appetite for climate‑aligned assets and the proven track record of BTG Pactual’s timberland portfolio have shifted investor sentiment. By bundling commercial forestry with rigorous ecological restoration, the fund offers a dual‑value proposition: measurable carbon removal and sustainable timber revenue, a combination that resonates with both impact‑focused and traditional institutional investors.

Central to the strategy is the Brazilian Cerrado, one of the world’s most biodiverse savanna ecosystems. Conservation International’s advisory role ensures that restoration follows the latest science, from direct‑seeding trials to native‑seedling planting. The initiative has already planted 29 million trees across 64,000 acres, secured FSC certification for all forested parcels, and created over 500 full‑time jobs, with a target of 2,700 positions once fully deployed. By expanding riparian buffers and protecting 400 miles of streams, the project also delivers co‑benefits for water quality and local livelihoods, reinforcing the business case for ecosystem services.

The issuance of carbon credits under Verra’s VM0047 methodology—validated by the Integrity Council for the Voluntary Carbon Market—adds a critical layer of credibility. These credits meet the Core Carbon Principles, offering buyers assurance of additionality and permanence. With 18 diverse investors, including development finance institutions like BNDES (≈ $55 million) and the IFC, the fund illustrates how public‑private partnerships can mobilize capital at scale. As corporate net‑zero pledges intensify, the BTG Pactual TIG model is likely to become a benchmark for future large‑scale restoration funds seeking both financial returns and verifiable climate impact.