BTG Pactual TIG acquires 90,000 acres of US timberland from Jamestown

‍

One of the world’s largest timberland investors has bought 90,000 acres of US forest, pushing its American estate beyond 1.7 million acres in the latest of a fast-moving run of deals. BTG Pactual Timberland Investment Group, the timberland arm of Brazil’s biggest independent investment bank and the largest forestry manager in Latin America, acquired the holding from property group Jamestown and now runs $8.2 billion of assets across the US and the region.

The purchase comes as investors keep buying US timberland at close to a million acres a year, a bet that a long-delayed recovery in US housing construction will revive demand for sawn timber. Forestry has pulled in that money on familiar arguments: returns that are lightly correlated with public markets, a hedge against inflation, and an asset that gains value as the trees grow.

Much of it has moved to the US South, where lower land and labour costs, longer growing seasons, and sustained sawmill and bioenergy investment have made the region one of North America’s most sought-after timber markets. A growing share comes from overseas, with timberland now close to half of all foreign-held US farm and forest land.

The newly acquired holding fits that mould, spanning 50,000 acres of pine in Georgia and Alabama and diversified hardwood across Indiana, Pennsylvania and New York, all certified under the Sustainable Forestry Initiative. David Cassels, who heads US portfolio management at BTG Pactual TIG, said the deal deepens the firm’s position in well-traded southern pine and northern hardwood markets.

‍

At Avalon Growth Capital, we believe this transaction reinforces several long-term themes that business owners should understand as they evaluate strategic growth opportunities, capital investments, acquisitions, or eventual exit strategies.

‍

1. Institutional Capital is Expanding Beyond Timberland

Historically, institutional investors primarily focused on acquiring large, contiguous timberland holdings. Today's investment landscape has evolved considerably.

As ownership of timberland becomes increasingly concentrated among institutional investors, opportunities throughout the downstream forest products value chain become more attractive. Investors recognize that the greatest value creation frequently occurs through vertical integration—including sawmills, engineered wood products, mass timber manufacturing, biomass utilization, specialty wood products, and value-added processing.

For privately-owned businesses, this creates significant opportunities to attract strategic growth capital, pursue acquisitions, or partner with institutional investors seeking operating platforms rather than simply raw land ownership.

‍

2. The U.S. South Continues to Attract Investment

The continued migration of institutional capital into the U.S. South reflects more than lower timber costs.

Investors increasingly value:

• Faster biological timber growth
• Lower delivered fiber costs
• Significant modern sawmill capacity
• Expanding biomass and renewable energy infrastructure
• Business-friendly regulatory environments
• Large private timber ownership base
• Strong transportation and export infrastructure

For companies operating throughout Georgia, Alabama, Mississippi, Arkansas, Louisiana, East Texas, and neighboring states, these dynamics support favorable long-term investment fundamentals despite short-term housing cycles.

‍

3. Timberland is Increasingly Viewed as Infrastructure

Institutional investors are no longer evaluating forests solely on stumpage values.

Modern investment underwriting increasingly considers forests as diversified infrastructure assets capable of generating multiple revenue streams, including:

• Traditional timber harvesting
• Carbon credit programs
• Conservation easements
• Renewable energy development
• Solar leases
• Recreational leases
• Water resource management
• Biodiversity and ecosystem service markets

Business owners should similarly evaluate whether their land holdings possess untapped value beyond traditional timber production.

‍

4. Housing Recovery is Only One Component of the Investment Thesis

Although investors continue to anticipate a recovery in U.S. residential construction, institutional acquisitions are not solely dependent upon housing demand.

Long-term investors recognize that timber benefits from several structural advantages:

• Trees continue growing regardless of market conditions.
• Harvest timing can often be deferred during weak pricing environments.
• Biological growth creates intrinsic asset appreciation.
• Timber historically provides inflation protection.
• Returns exhibit relatively low correlation with traditional financial markets.

These characteristics continue attracting pension funds, sovereign wealth funds, insurance companies, family offices, and global infrastructure investors.

‍

5. Sustainability Has Become a Capital Requirement

The BTG acquisition includes acreage certified under the Sustainable Forestry Initiative (SFI), highlighting the growing importance of sustainability credentials.

Increasingly, lenders, institutional investors, customers, and strategic acquirers expect companies to demonstrate:

• Sustainable forest management
• Environmental stewardship
• Chain-of-custody documentation
• ESG reporting capabilities
• Responsible harvesting practices

Companies lacking formal sustainability programs may find themselves at a competitive disadvantage when seeking institutional financing or pursuing strategic transactions.

‍

6. Scale is Becoming Increasingly Valuable

Large institutional investors seek efficiency through scale.

That trend extends well beyond timberland ownership into manufacturing operations.

Larger, diversified operators generally benefit from:

• Lower procurement costs
• Improved logistics
• Greater purchasing leverage
• More efficient capital deployment
• Better access to debt markets
• Stronger customer diversification

This environment creates opportunities for mergers, acquisitions, and strategic consolidations among privately-owned forest products businesses seeking greater competitiveness.

‍

7. Capital is Available for Businesses with Clear Growth Strategies

Despite broader economic uncertainty, institutional capital remains available for companies capable of demonstrating:

• Sustainable fiber access
• Modern production facilities
• Operational efficiency
• Stable customer relationships
• Attractive geographic positioning
• Experienced management teams
• Disciplined financial reporting

Businesses investing today in modernization, automation, expansion, or acquisitions may find an increasingly receptive financing environment from private credit funds, family offices, infrastructure investors, and strategic partners.

‍

Investment Banking Implications

For owners considering a capital raise, recapitalization, or sale, current market conditions suggest several important considerations.

Strategic Buyers Continue to Build Platforms

Rather than acquiring isolated assets, many investors seek integrated regional platforms capable of serving multiple end markets.

Companies with complementary capabilities—including timber procurement, sawmilling, drying, remanufacturing, engineered wood products, logistics, or distribution—may command strategic premiums.

Operational Excellence Drives Valuation

Modern investors increasingly differentiate businesses based upon:

• EBITDA quality
• Equipment age
• Fiber procurement strategy
• Customer concentration
• Automation
• Labor efficiency
• Environmental compliance
• Growth opportunities

Businesses that proactively address operational improvements before entering the market often achieve stronger valuations and broader buyer interest.

Capital Structure Matters

Many privately-owned businesses remain undercapitalized or rely on legacy banking relationships that may not support future growth.

Alternative financing structures—including private credit, subordinated debt, preferred equity, structured equity, and institutional co-investment—can provide greater flexibility while preserving ownership objectives.

‍

Strategic Questions Every Forest Products Business Should Be Asking

As institutional investment accelerates across the sector, owners should consider:

• Is our current capital structure optimized for future growth?
• Would strategic acquisitions strengthen our competitive position?
• Are we maximizing the value of our timberland assets beyond traditional harvesting?
• Are we positioned to benefit from emerging carbon and sustainability markets?
• How attractive would our business appear to institutional investors today?
• What investments should be made before pursuing a sale or recapitalization?
• Could a strategic partnership unlock growth that internally generated capital cannot support?

‍

Avalon Growth Capital's Perspective

The continued deployment of institutional capital into U.S. timberland reinforces a broader trend: global investors increasingly view the forest products industry as a resilient, long-duration asset class supported by biological growth, inflation protection, sustainability, and long-term demand fundamentals.

For privately-owned timberland owners, sawmills, secondary wood manufacturers, engineered wood producers, and other forest products businesses, this environment presents a unique window to evaluate strategic capital alternatives. Whether the objective is funding expansion, modernizing operations, executing acquisitions, refinancing existing debt, or preparing for an eventual ownership transition, businesses that proactively position themselves before the next housing upcycle are likely to command the strongest interest from lenders, strategic acquirers, and institutional investors.

At Avalon Growth Capital, we believe the most successful transactions occur well before a company enters the market. Strategic planning, operational preparation, and thoughtful capital structuring enable owners to maximize enterprise value while positioning their businesses to capitalize on the increasing flow of institutional investment into the U.S. forest products sector.

‍

Source: Business Wire, June 10, 2026

https://www.businesswire.com/news/home/20260610940674/en/BTG-Pactual-TIG-Acquires-Jamestowns-Timberland-Platform