A new caste of agri funds, managed by agriculture professionals alongside finance experts, should help to restore the reputational damage done by the investment banker-led agri funds of years past.
As the diversity of agri funds grows, and the credibility of their management improves, there is an opportunity for a thriving fund of funds market to mobilise institutional investors.
Attracting investment into Africa is not straightforward and there is no clear solution. But appealing to DFIs is a good place to start; the institutions will follow eventually.
Institutional investors may be increasingly attracted to funds touting operational agri expertise – but that doesn’t mean they should disregard buy-and-lease models, especially in developed markets like Australia.