Dutch fund manager Convent Capital has launched a growth capital vehicle that will invest in innovative and sustainable companies in the agricultural and food value chain.
Agri Food Growth Fund has a €150 million target and has been seeded with €50 million from approximately 15 investors, the majority of which are European family offices, the firm confirmed to Agri Investor.
“We are furthermore in discussion with a number of institutional investors which we hope to welcome to our LP base in the second and/or final close of this fund,” a spokesman told Agri Investor. LPs will also have the option to co-invest alongside the fund on a case-by-case basis.
The vehicle will link 100 percent of its carried interest to the achievement of impact goals, which will be verified by an independent investment committee and consultant MJ Hudson.
Agri Food Growth Fund will target businesses across the food value chain in the OECD region including services providers and distributors, with its first investment going into an unnamed plant-based animal feed additives company.
Convent Capital will make investments ranging between €5 million and €20 million, as it seeks to establish a portfolio of 10-12 companies. “The goal is to deploy most of the capital within three years while allowing for some dry powder for follow-on funding during the investment period,” the spokesman said.
Bor Boer, principal of Convent Capital’s Agri Food Growth Fund, said in a statement: “Through its reduced risk strategy, Convent Capital finances fast-growing companies with proven technologies and business models. This is a promising and relatively underfunded segment within agrifood, an industry that will play a crucial role in the sustainable development of, and quality of life on our planet.”