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The current fundraising environment for agribusiness is seen as similar to the period immediately following the global financial crisis.
Joe Azelby
UBS group managing director Joe Azelby sees promising demand drivers for farmland but the lack of 'scalable doorways' will limit large investors.
Up to 10% of Fund II could end up invested in the asset class, with permanent crops and agtech growth equity eyed to help meet the vehicle’s 15% net return target.
NCREIF’s Q1 results showed US farmland delivered a negative return for the first time in almost 20 years, but the coronavirus played a very small part in it.
The AgIS Farmland Club Fund will target gross IRR of 8-12% though up to 10 investments focused on permanent crops.
President Steve Bruere says attractive post-covid-19 equity and bond prices have kept most institutional investors too busy to investigate farmland opportunities.
Prudential Agricultural Investments will target unlevered returns of between 6% and 10% through a focus on permanent crops.
Firm partner Adam Oliver says institutional farmland managers’ efforts to broaden portfolios and diversify risk is helping create interest in the country.
Managing partner Nik Dilks said the size of EIP’s Fund IV meant larger LPs could make commitments, which helped the firm hit its hard-cap.
Curtis Buono and Jeremy Darner said they expect to focus largely on helping institutional investors deploy funds in California farmland markets increasingly shaped by the SGMA.
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