October 17, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Cultiv8 Funds Management (Cultiv8) has partnered with global investment manager Findante for the launch of the Cutliv8 Agriculture and Food Technology Fund. 

With a target size in place of $100 million, the fund is launching with a cornerstone investment from Fidante parent company Challenger Limited as a foundation for its first raise.

The fund will focus on investments centered on capital growth and sustainability, building out a portfolio of 20-30 Seed to Series B capital commitments, which over a recommended nine-year time frame, are anticipated to provide gross returns of 20 percent per annum. 

Portfolio managers Jonathon Quigley and Malcolm Nutt come to this endeavor upon being partners in the very successful SparkLabs Cultiv8 accelerator program that was the result of a partnership between SparkLabs Group, one of the top accelerators in Asia, and the New South Wales Department of Primary Industries (DPI), that went live in March 2018.

Quigley noted that although agriculture and food technology is a rather niche asset class, it is a rapidly growing segment within the venture capital sphere that is taking a serious approach to reimagining the world’s food and agriculture systems.

“The Portfolio managers of the Cultiv8 Agriculture and Food Technology Fund each have over 20 years experience in financial markets and proven expertise in this area,” said John Burke, global head of Fidante. “The team has the potential to lead the Agri-Food Tech market not only in innovation and research but also in performance and industry partnerships.”

Over the past four years, SparkLabs Cultiv8 has supported 36 startups to become one of the most active agri-food tech accelerators in the world, and the most experienced in Australia – a fact reflected in the success of its portfolio companies that have gone on to secure significant capital raises, create large amounts of jobs in regional Australia, and deliver significant environmental benefits.

A glance at some of these successful investments includes ventures working to leverage seaweed in feed rations to reduce livestock methane emissions, others that are working to replace antibiotics in livestock production, or reduce the rate of chemical residue in farming, or develop high-value, alternative food products.

“We support companies to evolve from ideas to commercialization,” said Quigley. “We are looking to invest in management teams that are developing solutions to increase farm productivity, profitability and connectivity, modernize supply chains and create novel, high-value products that solve real challenges or capitalize on opportunities.”

Throughout its existence, Cutliv8 has established relationships not only with the New South Wales DPI, but also other key industry bodies including  Meat & Livestock Australia, and Grains Research and Development Corporation, letting the investor approach portfolio building from a beneficial position.

Quigley explained, “We cultivate these management teams and companies by integrating the expertise of researchers, farmers, investors, and global corporate partners to digitize agriculture and contribute to a sustainable future.”

Through this partnership, Burke noted that Cultiv8 will be joining Fidante’s stable of 16 investment management businesses, adding, “Our investment managers are carefully selected not only for their robust investment processes, but also for their expertise, passion, and ability to deliver the best possible outcomes for investors.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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