January 21, 2025

By Gerelyn Terzo, Global AgInvesting Media

Canadian ag-focused investment management Bonnefield Financial, which oversees C$1.5 billion (US$1.0 billion) in assets under management, has reached the second close of its agri-business fund. Buttressed with an anchor investment from Farm Credit Canada (FCC), which is 100 percent invested in Canadian ag and food, the Bonnefield Agribusiness Fund LP I (BAF) has raised over C$75 million (US$52 million) so far.

Launched in 2023, the fund BAF invests non-controlling equity capital to support the growth of leading agribusinesses, with a focus on Canada. The fund also has the ability to invest in the U.S. and may pursue deals there if there is a rationale for it. GAI News has learned that Bonnefield completed a small initial close in the fund during 2023 to complete its maiden investment.

BAF targets established lower-middle market businesses operating in the middle of the agriculture value chain, including primary and value-add processors, food and ingredient manufacturers, and storage and distribution businesses. As alluded to, the fund has begun deploying capital, including an investment into a major Canadian produce shipper/marketer with attractive growth opportunities across North America. Additionally, Bonnefield’s investment team is currently eyeing several other investment opportunities.

Bonnefield Financial Founding Partner and CEO Tom Eisenhauer posted on LinkedIn, “Thrilled to announce the second close of Bonnefield’s Agribusiness Fund. This fund compliments our core farmland funds by investing non-controlling capital to support growing Canadian agribusinesses. We’re even more excited that this round of funding included a partnership and anchor investment from Farm Credit Canada.”

FCC Vice-President of Investment Doug Hewson said, “Canadian agriculture needs capital to drive innovation and support agri-businesses. FCC is committed to working with industry partners to expand on what’s available. The Bonnefield Agribusiness Fund complements our current capital solutions, and we are eager to collaborate with the Bonnefield team to foster impactful investments that support the industry’s growth.”

Bonnefield President and Managing Partner Andrea Gruza commented, “We are thrilled to have the partnership of FCC, a leading provider of capital to Canadian agriculture and food, supporting these investments.” Gruza also spent some time with GAI News to share further details about Canada’s farming industry and the fund.

1.) GAI News: How would you characterize the fundraising climate for ag farmland?

Gruza: “Despite a somewhat challenging fundraising environment in 2024, the fund has been received very positively by potential LPs. While we recently completed our second close, we have a number of groups in diligence who have been following the story but due to market conditions, planned to review potential allocations in 2025.”

2.) GAI News: Can you share more about the value proposition that Bonnefield offers Canadian farmers?

Gruza: “Canada is a large agricultural geography with high quality operators, but many struggle to grow due to a lack of available capital. These are businesses that are not necessarily for sale (many may be multi-generational) but are looking for supportive capital from partners who understand agriculture. Given Bonnefield’s position as a leading Canadian farmland manager, we can provide strategic value in addition to capital as we support these businesses in getting through their next leg of growth.”

3.) GAI News: As the world’s fifth-biggest ag exporter and the fourth largest exporter among Organization for Economic Co-operation and Development (OECD) countries, Canada plays a critical role in feeding the world. How does this dynamic play into the opportunity for investment?

Gruza: “The other feature of Canadian agriculture that lends itself well to this fund is that Canada has historically underinvested in primary processing and rather, we send many of our commodities abroad to be cleaned, crushed, etc. The demand for capital to strengthen our domestic processing facilities was already a driver of opportunity when the fund was originally launched and is possibly even more top of mind in today’s environment.”

GAI News would like to congratulate Bonnefield on the second close of its agri-business fund and thank Andrea Gruza for her contribution.

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