Four trends are defining the food and agriculture asset class, according to a new investment outlook report from Valoral Advisors, the investment advisory firm.
They are: the increasing number of investment funds servicing the agriculture investment market, innovative capital structures responding to investor needs, growing interest in direct and co-investment and demands for an institutional track record and strong governance.
Sustainability factors will also be key for many institutional investors entering the sector, according to the report.
The sector “still has a long way to go to demonstrate to the investment community its ability to deliver adequate returns”, writes Roberto Viton, founder of Valoral, adding that already $45 billion is managed by some 240 food and agri investment funds.
“A strategic review of the investment landscape across the asset class, with an up-to-date analysis of the major asset categories and a special section on South America’s challenges & opportunities”, the report presents the case for each asset class within food and agri-listed equities, commodities, farmland, private equity, venture capital and agricultural trade finance, and provides various trends and data points.