Over $131 billion assets under management in food & ag sector, new GAI Rankings Report finds

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The GAI Rankings Report highlights the significance of capital being raised and deployed to pursue farmland investments, confirming more than 50 million acres globally under management and $51.5 billion in assets under management.
HighQuest | 6 April 2020

Over $131 billion assets under management in food & ag sector, new GAI Rankings Report finds
 
BOSTON (April 6, 2020) – A first-of-its-kind report that provides a comprehensive analysis of capital flows into the global food and agriculture (F&A) sector has been released by Global AgInvesting, entitled Global AgInvesting Rankings & Trends Report 2019. The GAI Rankings Report highlights nearly 700 organizations that are investing in the F&A sector with over $131 billion in Assets Under Management (AUM) in 2019.
 
The authors of the GAI Rankings Report -- Philippe de Lapérouse and Mark Zavodnyik of HighQuest Partners -- will host a webinar on Wednesday, April 15 at 1 p.m. EDT to provide an overview of the report. Register for the webinar here, and view this interview with Lapérouse to get more details.
 
The GAI Rankings Report provides details from the first methodical canvassing of organizations actively raising and deploying capital in the F&A sector, including asset managers, agribusinesses, sovereign wealth funds, family offices, pension funds, development finance institutions and more.
 
Among the key points presented is the increase in the number of closed funds dedicated to F&A, which was up 79 percent from 2018 to 2019, with an average annual increase of 36 percent over the last decade. Additionally, the GAI Rankings Report highlights the significance of capital being raised and deployed to pursue farmland investments, confirming more than 50 million acres globally under management and $51.5 billion AUM, which was 39 percent of global ag AUM in 2019.
 
The GAI Rankings Report also revealed insights on drivers that are expected to continue to support increased capital flows into the F&A sector. Overall, the results provide a picture of how this narrative will continue to play out with a variety of investors committing capital to this distinct asset class. From this report, agriculture investment stakeholders will better understand:
 
  • Investment strategies and operating models used to deploy capital;
  • Volume of capital (AUM) being deployed in the F&A sector globally by investment strategy and crops and activities being financed;
  • Geographic focus of investment activity; and 
  • Vehicles being used to invest in the sector.
 
“The F&A sector has developed an insatiable appetite for capital to address the challenges of producing increasing quantities of biomass for food and feed in the face of decreasing availability of arable land, shrinking water sources, and increasing weather volatility,” said Lapérouse. “During this time of disruption caused by the coronavirus pandemic, it is even more imperative to understand the opportunities and challenges that the F&A sector provides to investors. After all, food and agriculture are fundamental to ensuring the well-being of families and communities and crucial for supporting a dynamic and growing national and global economy.”
 
Those interested in obtaining a more in-depth view of the data and analysis presented in the Global AgInvesting Rankings & Trends Report 2019, as well as companies, asset managers and LP investors seeking advice on how to address challenges and leverage opportunities in the global F&A sector presented by the impact of the coronavirus pandemic, are invited to contact us at [email protected] The GAI Rankings Report can be downloaded at globalaginvesting.com/2019report/, and key findings will be presented during the April 15 webinar
Original source: HighQuest
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