Today, I’m joined by Jyri Hietala and Tapani Pahkasalo, Managing Partner and Co-Managing Partner of CapMan Natural Capital. In this conversation, we discuss CapMan’s approach to active forest investment management across Europe and unpack the recent sale of a Baltic forest portfolio to Inter IKEA. Jyri and Tapani explain how they build institutional-scale portfolios, create value through forest management, renewable energy, and other ecosystem services, and position assets for different buyer profiles at exit. We also talk about what this transaction may signal for the future of European forest investment. From industrial demand for long-term wood supply to the growing importance of biodiversity, carbon, and natural capital value creation, this episode explores why high-quality forestry assets are attracting attention from both financial and strategic buyers.

"You need to understand who your future buyers are—financial, strategic, or impact-driven—because the way you structure your assets today, including contracts and value streams, can directly influence your exit opportunities.” - Jyri

"This transaction is a strong example of building an industrial-scale portfolio and finding the right buyer who understands the value created—not just in timber, but across the entire asset, including sustainability and long-term management.” - Tapani

0:11 Introduction to the episode

0:20 Meet Jyri Hietala and Tapani Pahkasalo from CapMan Natural Capital

0:37 Favorite trees: pine and cork oak

1:46 Guest backgrounds and introductions

3:52 Why Dassos joined CapMan

7:07 CapMan Natural Capital’s investment approach

9:37 Value creation beyond timber

12:46 Current investment markets in Europe

13:40 The Inter IKEA transaction

14:35 How the Baltic portfolio was built

17:34 Previous owners and local forest management

20:12 Why Inter IKEA was the right buyer

21:22 What made the transaction successful

23:19 What the deal signals for European forestry

25:09 Forest health, bark beetles and wood supply

27:00 Industrial buyers and vertical integration

29:05 Biodiversity and ecosystem services

31:15 How buyer types shape portfolio strategy

37:02 Offtake agreements and exit flexibility

38:03 Why Europe remains attractive for investors

39:32 Advice for new forest investors

40:29 Where to learn more about CapMan Natural Capital

Founding Director and Host: Shauna Matkovich - The ForestLink

Producer and Editor: Magdalena Laas - Unscripted Creatives

Nature by MaxKoMusic/Soundcloud

Sopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud

Ambient Documentary by Sound Guru (Pixabay)

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