Forest Legacy Investments

Fund Management

Forest Legacy Investments, through effective timberland investment management, will increase long-term investor value through the disciplined implementation of active management strategies and operational expertise in the timberland acquisition process and timberland management.

Timberland Acquisition Process

Forest Legacy Investments continually searches for property with the ideal characteristics. FLI strives to identify timberland properties that will make attractive financial and conservation investments. FLI has an intensive identification, valuation and acquisition process that balances the goals of our investors. Our established industry network provides us with an array of contacts with major timberland owners, timberland managers, financial institutions, and other Timber Investment Management Organizations (TIMOs) in the Pacific Northwest. This industry network coupled with our proactive management team keeps FLI apprised of potential opportunities for our investors.

Our disciplined acquisition process is comprised of four stages outlined below.

Stage I: Property Identification
The property identification stage serves to answer the question: Do property attributes conform to our disciplined acquisition strategy and mission warranting further review?

Stage II: Initial Review and Establishment of Standardized Acquisition Database
The property data assessment is the primary function of the second stage and one of the most critical elements of our overall acquisition process. The property data is reviewed for completeness, quality, and organization and further cross-checked with a cursory ground tour utilizing FLI generated maps and analysis.

The second stage of the acquisition analysis determines the accuracy and usefulness of the property data and verifies property conservation attributes.

Stage III: Pre-purchase Comprehensive Review
The pre-purchase comprehensive review is the stage where the property valuation is concluded. The valuation modeling addresses any issues raised in the stage II review and includes detailed operability analytics including a harvest schedule, conservation management plan, and review of all management expenses and costs.

Stage IV: Post purchase and Pre-closure
The final stage of FLI's acquisition process includes an extensive data request of the timberland seller. Additional data such and road maintenance plans, miscellaneous Geographical Information System (GIS) layers, environmental surveys, and easements are assimilated into FLI's company standards. A final check cruise is conducted to fully confirm the timber inventory and an additional check cruise is conducted to check the check cruise. Additionally, a third party certified appraisal of the land is obtained. The fourth stage of our acquisition analysis is designed to identify any final issue that may trigger a clause that would prompt for an end to negotiations or alteration in purchase price.

Timberland Management

FLI determines the appropriate comprehensive forest conservation plan with input from the qualified land trust who will be the beneficiary of the forestland. This key determination is based on existing and native tree species, timberland region, and past management practices. The determination of the best biological regime dictates the future forest ecosystem characteristics, the fund harvest schedule, and associated management costs.

FLI will ensure that timberland management activities are performed at a competitive cost to our clients. FLI will proactively engage in both timberland management and management oversight activities. FLI will also opportunistically enlist experienced third-party timberland management services to benefit from certain economies of scale that will translate into a lower delivered management cost to our clients.

FLI has developed excellent relationships with several timberland management companies and plans to utilize third-party timberland management services. The third-party timberland managers that FLI is considering have experience collectively managing over one million acres in the Pacific Northwest.