February 12, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Rest Super (Rest), one of Australia’s largest profit-to-member superannuation funds with 1.9 million members and more than A$80 billion (US$52.3 billion) in global AUM, has made its first alternative asset class impact investment in Cibus Fund II. 

Advised by London-based Cibus Capital, the Cibus funds’ strategy specializes in making sustainable food and agriculture investments in mid-sized companies that are leading the future of food through innovation, disruption, increased resource efficiency, and sustainability.

To-date, Cibus has raised more than US$1 billion to invest across its two strategies: mid-market growth/buyout investments in food production and processing businesses, and late-stage agrifood technology companies. 

Examples of such investments include:

~ Withcott Seedlings, a major Australian vegetable seeding business with the capacity to grow approximately 350 million seedlings per year across a broad range of crop varieties. Through this partnership, Cibus Fund II and Withcott Seedlings plan to enhance the application of technology and robotics to improve production efficiency, such as the automation of seeding, sorting, grafting, monitoring, watering, and feeding the stock.

~ A state-of-the-art glasshouse tomato producer conducting work to form the basis for a platform focused on year-round production of produce in renewable energy-powered facilities. 

“Sustainable food production and agriculture practices offer significant value potential to Rest members and are essential for the global transition to net zero,” said Leilani Weier, head of responsible investment & sustainability, Rest Super. 

“Through our investment in Cibus Fund II Rest is growing its exposure to the dynamic and sustainable future of agriculture.”

“We expect this investment will generate exposure to mid-market agriculture companies that own real assets with profit generating potential. This will bring diversity benefits to our alternatives portfolio, while delivering long-term value for our members.”

This commitment by Rest represents its first impact investment within its alternative asset class, and brings it one step closer to its target of achieving a one percent allocation to impact investments across its total portfolio by 2026, explained Weier.

However, it is Rest’s third general impact investment following its capital commitment to the Palisade Impact Fund and speciality private equity firm ARCHIMED, which have all been assessed under Rest’s impact investment framework. 

“As a super fund representing one in five young Australians, we believe impact investing represents a powerful opportunity for us to grow our members’ super, while helping to build a more sustainable future,” said Weier. 

“The allocation provides exposure to initiatives at the forefront of modern agriculture and opportunities that address the growing need for environmental plantings and natural assets.”

Rob Appleby, chief investment officer, Cibus Capital, added “Cibus is delighted to partner with Rest, who has shown leadership by channeling capital towards companies who are shaping the future of food.”

“By combining commercial logic, technology and sustainable outcomes to each investment we make, we have demonstrated that the industry can produce healthier food, use resources more efficiently, and meet its nature-based target.”

~ 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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