Agri-focused investment manager Intergrated Ag Financial has bought several FSI Cube and Pellet operations, including its forage cubing business.
The firm made the acquisition through its IAF 30 LP investment platform, which was launched in May without commitments, according to SEC filings. The amount invested in the vehicle and financial details for the FSI acquisition have not been disclosed.
The firm’s previous platform, IAF 28 LP, had 960 acres of alfalfa farmland with a targeted IRR of 20 percent over a maximum investment period of five years, according to the company website. SEC filings show that the fund had raised $1.7 million from three investors in November 2015.
IAF targets agriculture companies subject to crop insurance and other US Department of Agriculture risk management programmes.
“Forage is an agro-industrial segment ripe for technology improvements and business consolidation,” said IAF Ventures managing partner Jon-Michael Nahon. “This acquisition will enable IAF Partnerships in general, and IAF 30 LP in particular, to integrate and develop synergies in its forage investments sector.”
The Arizona cubing facility, which produces forage feed pellets and cubes as an alternative to hay, will be incorporated into a new AIF subsidiary called Forage Global. The newly formed company is also in talks to acquire farmland in Arizona, California and New Mexico.
The fund has a minimum investment size of $300,000, with the offering expected to last for a year or less, according to the filing.