The Lacan Florestal project is the result of years of research, dedication and persistence by the Lacan Investimentos team. The project's embryo emerged in 2008 as a result of our reflections on the long-term alternative investments available to Brazilian institutional investors. Convinced that our real interest rate would converge in the following decades to a lower level, the Lacan team traveled to the USA, Canada, and Europe in order to better understand the long-term allocation of institutional investors. It was found that the portfolio of these global investor was poorly concentrated, by Brazilian stantards, in debt and equity securities, and highly dependent on the return on alternative assets such as currencies, commodities, and structured funds such as private equity, infrastucture and, due to its important characteristic of inflationary hedge and non-correlation with all other assets mentioned above, forests.
Back in Brazil, Lacan's team invested a lot of time and resources to understand what seemed the most suitable alternative for Brazilian institutional investors in line of the country's competitive advantages and what was already available in the local funds market, the forestry sector.
The first step in the direction of a project with strong foundations was the structuring of the team, inviting one of the most renowned specialists in planted forests in Brazil to join the project. 2009 and 2010 were intense years in research and travel. It was at this time that Lacan mapped all regions of the country from the point of view of the advantages and disadvantages for plantind forests and deepened conversations with foreign investors in order to adapt our fund's governance model to the best global standards.
Subsequently, in order to ensure a buyer for the wood produced, thus mitigating the project's risk, a partnership was signed with an important Brazilian forest-based company, which enabled the effective fundraising for the beginning of Fund I in 2Q2012. Nowadays, Lacan manges three forest funds and has thirty-three local pension funds, private banks, and foreign instiutional investors.