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Aqua Capital buys 60 percent stake in Brazilian inputs distributor

The firm's first fund is now 80 percent invested, having bought a series of agribusinesses companies and consolidated them.

Agriculture-focused private equity firm Aqua Capital has bought a 60 percent controlling stake in agricultural inputs distributions business Rural Brasil through its first fund.

Further financial information was not disclosed, but the fund is now more than 80 percent invested.

The São Paulo-based firm is also thought to have raised at least $188 million for a second fund targeting $300 million, with investors including the University of Texas Investment Management Company and German development firm DEG.

The new portfolio company focuses distributing seeds, fertilisers, pesticides and other inputs to 3,000 clients in Brazil’s Cerrado region, according to Aqua Capital. The firm says that its capital injection into the company will triple Rural Brasil’s business over the coming years. The remaining stake is held by the founders

The firm had deployed deployed 80 percent of its first fund when it acquired a controlling share of Brazilian animal-feed additives manufacturer Yes in March, Agri Investor reported.

The agribusiness private equity firm frequently makes consolidation plays by merging its portfolio companies, including inputs providers. Last year it bought fertiliser producer Dimicronas as an add-on to bio-stimulants specialist Aminoagro. The combined partnership has made them one of Brazil’s largest foliaceous fertiliser platforms, according to Aqua Capital.

Aqua Capital has over $400 million in assets under management, with its main investors being endowments and funds of funds.