SEATTLE--(BUSINESS WIRE)--Silver Creek Capital Management (“Silver Creek”), an alternative investment boutique focusing on private credit, hedge fund and real asset strategies, announced today the launch of a new joint venture with Plum Creek Timber Company (NYSE: PCL) (“Plum Creek”), Twin Creeks Timber LLC (“Twin Creeks”), which enables institutions to directly invest in high quality timber assets.
Twin Creeks will provide institutional investors an opportunity to co-invest in timberlands currently managed by Plum Creek with the objective of growing the portfolio to approximately $1 billion in valuation over time through opportunistic, selective timberland acquisitions from third parties. The venture is intended to be a long-term timberland investment with an initial 15-year term. The initial portfolio, valued at $560 million, will consist of 260,000 acres of Southern U.S. timberland located in five states sourced from Plum Creek.
Plum Creek will retain a 25% interest in Twin Creeks and will serve as property manager of the timber assets. Silver Creek will provide fund management and fiduciary services to the venture.
Lead institutional investors in Twin Creeks include the Washington State Investment Board, the Oregon Public Employees Retirement Fund, and the Alaska Permanent Fund Corporation, which have committed $300 million, $200 million and $100 million, respectively.
“This partnership provides sophisticated institutional investors a unique opportunity to directly access a portfolio of timber with a world class partner in Plum Creek, one of America’s largest timberland owners and most successful operators,” said Bryan Weeks, President and CEO of Silver Creek. “We believe fundamentally in the benefits and characteristics of this asset class and we plan to continue growing our timber portfolio in the years ahead.”
“We’re excited to partner with Silver Creek and these leading institutions,” said Rick Holley, Chief Executive Officer of Plum Creek. “Importantly, this co-investment structure uniquely aligns the interests of the property manager and investor clients, an important consideration for institutional investors. We look forward to managing and growing the joint venture while delivering solid returns over the long term.”
Bob Ratliffe, Silver Creek Managing Director and Head of Real Assets said, “Institutions are seeking ways to invest directly in real assets and partner with proven operators. Gaining immediate access to a portfolio of this size and quality has proven to be very attractive to investors at a time when alternative investments that are uncorrelated, provide cash flow and an inflation hedge are in high demand.”
Bill Turner, PhD, a veteran of the institutional timber industry, will serve as Co-Portfolio Manager and will work closely with Mr. Ratliffe in managing Twin Creeks. Twin Creeks will begin operations in the first quarter of 2016.
About Silver Creek
Silver Creek is an alternative investment boutique with a focus on private credit, hedge fund and real asset strategies. Silver Creek specializes in developing highly structured, unique investment solutions for a global client base which includes public and corporate retirement plans, insurance companies, foundations, endowments as well as Registered Investment Advisors and family offices who seek to access these asset classes. With its history beginning in 1994, Silver Creek has over $7 billion of assets under management and committed capital. For more information about Silver Creek, its team and investment approach visit www.silvercreekcapital.com.