ARC

Timber Supply Chain Finance

The DACH and Nordic timber supply chain generates billions in annual economic value. It has no dedicated institutional financing architecture.

ARC is that architecture.

Structuring · Not Yet Raising

The Asset Class

DACH and Nordic certified timber is one of the most structurally sound real asset classes in Europe - and one of the most consistently underfinanced at institutional grade.

The underlying economics are unambiguous. Germany, Austria, Switzerland, Sweden, Finland, and Norway together represent the densest concentration of certified, sustainably managed forestry in the world. The supply chain that runs from standing forest to processed end-product is large, complex, operationally intensive - and almost entirely financed by regional banks, trade credit, and working capital facilities that were not designed for the scale, speed, or institutional requirements of a market undergoing structural transformation.

Three forces are converging to widen that financing gap simultaneously. The mass timber construction mandate embedded in EU decarbonisation policy is driving demand for certified structural timber at a pace that conventional supply chain financing cannot keep up with. The reshoring of European industrial supply chains is increasing domestic timber processing and reducing dependence on offshore commodities. And the regulatory pressure on regional bank lending to capital-intensive supply chain operators is creating a structural withdrawal of the credit that has historically filled this gap.

The result is a financing void at precisely the moment when the asset class is most in demand. ARC was built to fill it - with institutional-grade senior secured credit, designed from first principles for the operational reality of the full timber supply chain.

The Structure

• Vehicle: Structured credit fund - senior secured asset-based lending combined with supply chain trade finance facilities across the full timber supply chain from forest to end-user
• Financing mechanism: Senior secured ABL + supply chain finance - real collateral at every lending stage
• Geography: DACH + Nordics - Germany, Austria, Switzerland, Sweden, Finland, Norway - the core certified timber producing and processing regions of Europe
• Supply chain coverage: Full - standing forest inventory · harvested log · primary processing · secondary processing · distribution and receivables
• Collateral: Physical timber assets and receivables at each supply chain stage - structural protection from inception
• Capital stack: Senior secured throughout - no equity exposure, no subordinated risk
• Target fund size: EUR 150–300m
• Duration: Short - 12 to 24 months per facility, revolving structure enabling continuous redeployment
• Target yield: 10–15% net - driven by structural complexity premium, supply chain collateral, and asset class financing gap
• Jurisdiction: Swiss-domiciled. Structured for DFI co-investment eligibility and cross-border DACH and Nordic LP access
• Regulatory framework: Swiss FinSA / FINMA-aware. EU AIFMD compatible structuring

The Thesis

The asset-based finance surge that KKR, Apollo, and Blackstone are driving at scale has not reached certified timber supply chains. The asset class is too operationally specific, too supply-chain-dependent, and too structurally complex for generalist credit platforms to underwrite with conviction.

That complexity is not a risk. It is the moat.

ARC enters where generalist credit stops - with the sector fluency, supply chain relationships, and structural design capability to originate, underwrite, and manage timber credit at institutional grade. The collateral is physical and traceable at every stage. The demand tailwind is embedded in EU regulatory architecture. The regional bank withdrawal is structural and accelerating. And the 12 to 24 month duration with revolving redeployment means the yield is not theoretical - it is generated, returned, and redeployed continuously.

The window for first-mover structural advantage in this asset class is open now. ARC is building the template before the large managers arrive to copy it.

Traction

Full credit strategy, origination pipeline, and transaction detail available to qualified investors upon access approval.

ARC is built on EUR 1.5bn+ in structured finance and private markets experience, with direct operational knowledge of DACH and Nordic timber supply chains, certified forestry ecosystems, and asset-based lending structures across European industrial sectors. The credit architecture is built from that foundation - applied to an asset class where the institutional financing infrastructure is being designed from first principles.

Who ARC Is For

Credit allocators and fixed income mandates seeking senior secured short-duration yield - 10 to 15% net - with real physical collateral, revolving redeployment, and structural protection in an asset class uncorrelated to standard credit market cycles.

DFIs and blended finance mandates aligned with sustainable forestry, biodiversity preservation, carbon sequestration, and bio-based construction - where certified timber supply chain finance delivers institutional return alongside verifiable, auditable environmental outcome.

Family offices and qualified private capital seeking asset-backed credit exposure with inflation linkage, short-duration liquidity profile, and a structural return premium that generalist credit markets have not yet priced into this category.

Access

ARC operates selective investor access. No open subscription. The process is structured, personal, and efficient.

01 - Expression of Interest Submit below. Reviewed personally within five business days.

02 - Qualification & Fit A short conversation to assess mandate alignment, investor qualification, and credit strategy fit.

03 - Platform Documentation Approved investors receive full fund documentation, a credit strategy overview, a financial model, a collateral framework, a supply chain coverage map, and a legal structure summary.

04 - Structuring Dialogue For DFI co-mandates, blended capital structures, and bespoke credit facility design, a deeper structuring conversation before any commitment is discussed.

Legal

This page is directed exclusively at professional investors within the meaning of MiFID II Article 4(1)(10). It does not constitute investment advice, a prospectus, or an offer or solicitation in any jurisdiction. Past performance is not indicative of future results. All investments carry risk including possible loss of principal. Credit investments carry additional risks including borrower default, collateral recovery, and supply chain concentration risk. Prospective investors should seek independent legal, tax, and financial advice before making any investment decision. ARC documentation includes full jurisdictional disclosures relevant to the vehicle and applicable regulatory frameworks.