Reba Capital launches $100m palm oil fund

Palm oil and renewable energy investment firm Reba Capital UK is raising $100m for a Colombian palm oil project.

The firm’s director, Dimitris Metaxas-Trikardos, told the Global Agro Investment Forum that the fund – Reba Capital UK LLP – would invest into palm oil plantations and processing in Colombia. It is aiming for a first close in December.

The 10-year fund will target an 18 percent internal rate of return. It will invest over a two-year period, injecting $78 million into 14,443 hectares of land, $17 million to construct a new mill and $5 million to expand the plantations.

The project will also involve tripling the number of workers on the land, according to Agostino Re Rebaudengo, chairman and founder.

The firm will charge a 2 percent management fee and a 15 percent performance fee over an 8 percent hurdle.

The firm did not say whether it had used placement agents.