DOWNLOAD: Agri-food and forestry fundraising stabilizes at $8bn

Annual fundraising for 2023 has slotted into the 8.2bn five-year average as 2022 emerges as the market’s major slump-year since 2018.

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Fundraising for agri-food and forestry funds stabilized in 2023 to finish the year on $8 billion, up from $5.9 billion in 2022, according to Agri Investor data.

The full year total for 2021 was $9.5 billion and in 2020 the sector raised $8.7 billion. The numbers show 2022 has been the standout slump-year for the market since 2018 when $5.3 billion was collected.

The $8 billion whole-year figure for 2023 represents a significant leap forward in comparison to H1 when the market had only raised $2.2 billion (the $1.4 billion fundraising figure cited in our H1 report related to all the H1 vehicles that had been disclosed at the time).

Significant closes at Paine Schwartz Partners ($1.7 billion Fund VI), Brynwood Partners, ($750 million Fund IX) and Astanor Ventures (€360m Fund II) among several others combined to push the market to $8 billion, marginally short of the $8.2 billion five-year average.

The Agri Investor data presented in this report counts the final closes of all close-ended funds and vehicles dedicated to agri-food and forestry. The numbers also take into account separate accounts and co-investment funds.

We have excluded vehicles that invest into agri-food and forestry assets opportunistically, which is why the numbers presented here are lower than those available on our full online database.

Debt vehicles made a comeback in 2023, with Cerea Partners and Proterra Investment Partners combined take of $800 million giving the strategy a 10 percent share of the fundraising market last year.

Excluding blended finance and debt-for-nature swaps, Proterra’s $500 million Credit Fund II became the second largest dedicated food and ag debt vehicle ever, after Amerra’s 2013 close of its $570 million Agri Fund II.

Debt vehicles accounted for 2 percent of all fundraising in 2022 and in 2021, it was 8 percent.

The average vehicle sizes was also up in 2023, with an average vehicle size of $170 million. In 2022 vehicles had an average size of $127 million and in 2021 the average size was $141 million.

The Agri Investor database also shows there were no buy-and-lease strategies closed in 2022 or 2023.

In 2021, buy-and-lease strategies accounted for 15 percent of the $9.5 billion raised during the year while in 2020, 6 percent of the $8.7 billion whole-year take was raised by buy-and-lease funds.

Check out our interactive fundraising report above for the full breakdown of fundraising activity in 2023. You can also download a PDF of the report HERE and download the data HERE.