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Apollo looking for agribusiness for $2.8bn natural resources fund – exclusive

Apollo is still building on its platform Pinnacle, which acquires and scales up agri inputs businesses, but will look opportunistically at other agribusiness assets with its latest fund.

Apollo Group is likely to make investments in agriculture from its second natural resources fund, which has raised $2.76 billion, according to SEC filings.

An industry source has told Agri Investor although the fund is primarily focused on energy, metals and mining, it is also likely to look for opportunistic investments in agribusiness.

Apollo would look at at inputs, processing, finishing, distribution, preservatives or aquaculture acquisitions that fall in line with the fund’s targeted rate of return of above 20 percent. The source added the fund’s return profile would mean it would not target direct investments in farmland or timberland.

The fund, which is targeting $3 billion, is likely to reach a final close in September or October, according to the insider.

Investors in the fund include San Francisco Employees’ Retirement System, Teachers’ Retirement System of Louisiana, Santa Barbara County Employees’ Retirement System and New York State Common Retirement Fund, according to PEI Research & Analytics.

Apollo is still building Pinnacle Agriculture Holdings, the platform created in 2012 by its Natural Resources Partners Fund I to acquire and scale up inputs distributors and service providers for the agriculture industry. It now operates eight brands in agricultural retail distribution, providing seed, fertiliser and agricultural services.

Apollo Global Management invests in private equity, credit and real estate with significant distressed expertise. The group holds $183.6 billion in assets under management, with investments ranging in size from $200 million and $1.5 billion, according to PEI Research & Analytics.