Interview with Sorin Chiorescu, Founder and CEO of GreenGold

Who is Sorin Chiorescu? And what is GreenGold?

I was born in Romania, and forestry is both what I know and what I am deeply passionate about—a connection I discovered at a young age through hunting trips with my father. I went on to study forestry in Romania and France at ENGREF – École Nationale du Génie Rural, des Eaux et des Forêts. The French school of forestry places strong emphasis on long-term planning, viewing forests as strategic resources to be managed for permanence rather than short-term exploitation. That long-term perspective has stayed with me ever since.

I have worked internationally in the forestry sector, including in the United States and France, before earning a doctorate in Forestry at Luleå University of Technology in northern Sweden. I have now lived in Sweden for the past 27 years, and for the last 19 of those I have been investing in and managing forest assets under the GreenGold name.

People around me would probably say that I can be tough and quite stubborn at times, particularly in negotiations and external business matters. At the same time, I believe they would also describe me as supportive and empathetic when it comes to the people I work with, whom I see not just as colleagues, but as a family.

GreenGold, today, is a large and successful European forest investment platform, currently owning and managing forest assets in 7 countries (those being Scotland, Sweden, Finland, Estonia, Latvia, Lithuania and Romania). The core strategies are to: 1. be a small but efficient organisation, i.e. operate at low cost, 2. be diversified for low risk, 3. freehold ownership, i.e. we own and control the assets without external encumbrances, 4. we buy-to-hold forever, which also means we continuously reinvest into the properties to generate optimal long-term value.

You founded GreenGold with a very long-term mindset. Can you take us back to the origin – what was the driving force behind starting the company?

The story of GreenGold goes back many years. In the early 2000s, when working in the US, I saw how so-called Timber Investment Management Organizations (TIMOs) were channelling large sums of institutional capital into forestland in North America. At the time, nothing like that existed in Europe. I thought, why wouldn’t a similar professional set-up for European timberland investment work? Especially given Europe’s fragmented forest ownership, which provides a strong opportunity for consolidation and aggregation. That insight became the seed for GreenGold.

We started out with separate forest funds around 2007 and we were also an exclusive manager for Harvard’s European forest assets for a number of years, and humbly were quite successful, generating more than 20% CAGR across all the funds. However, since 2018 GreenGold has changed away from fixed term funds, into an evergreen and simple investment company structure, a long-term model that suits me as a forester. Forests don’t move in quarterly or yearly cycles; they grow and develop over decades. That means the biggest success in this field can only come with a long-term perspective, when investment horizons are aligned with the natural cycles of forestry, where patience and professional management create sustainable — and significant — value over time.

How do you see GreenGold’s approach differing from others in the forestry and land investment space?

The big difference now is that we buy to hold forever. Many in this space talk about being long-term, but our entire model is built around it. Management has real skin in the game through significant share ownership, so we don’t see ourselves as managers of the forests for someone else, but rather as principal owners together with our other investors. Timber sales are our core, but we also focus on multi-use of the properties, and we have always been very local. Our strategy is to stay diversified, self-managed, with little to no leverage.

Has your original vision changed over the years?

Well, we have gone from managing closed-end funds with a limited investment horizon to the current evergreen structure. However, the core — responsibly managing natural forests — hasn’t changed. What has evolved is our ability to scale that vision across Europe. We have built very strong local teams and now have a track record that proves the model works in seven countries.

What do you believe is the biggest misconception about forestry investment?

One misconception, that you come across in the media sometimes, is that active forest management is bad for the environment, and that the best way to help the climate is simply to leave trees standing. In fact, it’s the opposite: growing forests absorb the most CO₂, and active management keeps them healthy, resilient, and productive. By harvesting and regenerating in cycles, we ensure continuous growth and higher carbon capture over time — while also delivering timber and other benefits society depends on. It is similar to your garden: if you don’t take care of it, it will overgrow and become less healthy, with reduced biodiversity over time.

Another misconception is that returns are low. In reality, on a risk-adjusted basis, returns are attractive. Much of that value comes from what we call “Biological Interest” — the steady accumulation of wood volume in our forests, which compounds into higher financial value year after year. Coupled with our strict acquisition discipline and our model of seeking the best opportunities across whole Europe, the returns are strong.

You have a very large presence in Romania. I guess it is because you are Romanian?

It certainly helps that I am Romanian and speak the language, but actually no, that is not the reason. It is because it has been, and still represents, one of the best return cases in forestry in Europe. There used to be issues with theft and illegal logging, uncertain property rights etc., but they have largely disappeared and Romania actually has one of the best and strictest logging monitoring systems in Europe right now. Biological growth is good, with high quality properties with high volume per hectare, healthy forests with a good mix of hardwood and softwood. The country is also undergoing significant infrastructure investments; it recently joined Schengen and is working to join OECD etc., so a promising future. That is the reason why we are the second largest private forest owner, after IKEA.

You mentioned CO₂ absorption and Biodiversity – how does GreenGold think about its role in the broader sustainability movement?

As foresters, we feel a deep responsibility to nature. It’s not about ticking ESG boxes — we genuinely act as stewards of the forests for future generations. Showing that sustainability and financial returns are not mutually exclusive is important to us. We’re also exploring innovative areas like forest-based carbon storage, CO₂ credits, and ecosystem services. But we approach these with caution — there needs to be a strong logical and ecological foundation. We are allergic to greenwashing; after all, we already manage the greenest asset available.

What do you see as the next big opportunity for GreenGold?

To enter one or two new European countries, and then maybe venture outside Europe to become global, although the latter is likely far in the future since Europe offers significant growth opportunities for many years to come. We are also working to become even more digital, utilising AI, satellite, drone, and sensor technologies for real-time and remote area monitoring, as well as modelling and planning. This will allow us to become even more efficient and manage much larger areas per employee.

GreenGold has quite a noteworthy list of shareholders, at least from a Nordic perspective. How did the Company attract such a group?

Yes, I very much appreciate our supportive and experienced list of shareholders. It has come about through a combination of skill and, I suppose, some luck. I have worked hard on fundraising myself over the years, with valuable support from our shareholder base, the Board, and their respective networks. I believe that forests and wood as an asset class—together with their historically stable return characteristics—appeal to many investors. At the same time, private investment in this area is not straightforward: it requires scale, time, effort, and specific expertise. Many have appreciated what we have built, our strategy, and the returns we have generated, and have therefore recommended us to friends, colleagues, and business partners.

GreenGold has publicly signalled interest in a potential IPO. Why now – and what would be the rationale behind such a strategic move?

An IPO could allow us to broaden our capital base further. It’s not about exiting — it’s about opening up the company to new investors. We believe there is demand for a listed platform like GreenGold, offering pure European forestland exposure, which currently does not exist in the public markets. We’re not rushing — we are carefully evaluating when and how a listing would best serve the company, the forests, and our stakeholders.

Speaking frankly, I believe the external challenge will be getting the market to understand and accept the long-term nature of responsible forestry, when it can be very short-sighted and impatient. Internally, I want to make sure we are not losing our entrepreneurial spirit, which has served us very well.

What keeps you personally invested in this work, after all these years?

The sense of building something that outlasts you — that’s what keeps me going. This is not just business for me; it’s a legacy project. I am very proud of the human relationships built over almost two decades within the GreenGold team, as well as with shareholders, customers, and the local communities where we own our assets.