Briefing: Traditum PE launches evergreen UK farmland fund

The firm wants to build up to a portfolio worth £100m and is targeting a 10-12% IRR.

Traditum Private Equity has launched an evergreen UK farmland vehicle that is looking for a £10 million ($12.7 million; €11.6 million) first close.

The British firm will seek to build out a portfolio of “UK farmland assets in the double figures,” said Traditum’s head of agriculture Stephen Pickup.

Agri+ Fund will pursue an own-and-operate strategy of acquiring farmland and supporting operations and revenue growth through agtech investments, changing practices, improving biodiversity and carbon capture.

Pickup said monetizing farmland’s capacity to absorb carbon “is obviously something we are looking at. Generally, our view is that the value of carbon is going to increase over time and therefore we are in no rush to monetize this.”

The vehicle is aimed at family offices and will make investments within the range of £2 million and £7 million. Traditum will seek to deliver an IRR of 10-12 percent.

“Ultimately, over a number of years, we are looking to reach a portfolio size of around £100 million through a mix of asset appreciation and further raises as the strategy and sector becomes more widely known and considered more mainstream,” said Pickup.

In response to a question about whether the vehicle has an anchor investor, Pickup said: “Yes, existing clients have shown a strong interest in the vehicle and will form the basis of the fund.”