SLM Partners and M&G Expand Sustainable and Private Credit Offerings

SLM Silva Fund II, managed by specialist natural real assets firm SLM Partners, will deploy capital across European forest ecosystems using Continuous Cover Forestry (CCF). This regenerative approach, which avoids clear-cutting in favor of selective harvesting, aligns with the EU Forest Strategy for 2030 aimed at carbon storage and biodiversity restoration. APG’s investment, made on behalf of the ABP pension fund, marks the final close for the vehicle. The strategy builds upon the firm's 2018 predecessor fund, which successfully transitioned over two-thirds of its 2,000-hectare Irish portfolio to CCF management. According to Andrey Gushchin of APG, the investment serves dual purposes: supporting climate ambitions while securing long-term financial returns. Beyond the environmental benefits, SLM Partners maintains that CCF offers economic stability by smoothing cash flows and reducing reliance on volatile timber prices through higher-quality yield.

Simultaneously, M&G is targeting the private credit sector with its newly launched Diversified Private Credit Feeder Long-Term Asset Fund (LTAF). Backed by £74 million in initial capital—including a significant portion from M&G’s own £138 billion With Profits Fund—the vehicle provides professional investors and DC pension schemes access to assets historically trapped within private markets. By financing infrastructure, real estate, and direct business lending, the LTAF aims to generate income streams uncorrelated with traditional listed fixed-income markets.