April 25, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Convent Capital, an independent asset manager based in the Netherlands, announced its second close for its AgriFood Growth Fund at EUR 100 million (US$110 million) in capital commitments.

Of this total, EUR 10 million (US$11 million) was committed from the Dutch insurance company a.s.r.

Founded in 2011, Convent Capital has been investing in the circular economy ever since. Its first fund was a cross-sector private equity vehicle focusing on financial and circular growth for Benelux-based SME’s with a strong track record and operational capabilities. After being successfully operational for more than 10 years, demand from investors who were unable to participate in the first fund but who recognized Convent’s ability to grow companies, called for the formation of the Agri Food Growth Fund, launched in April 2022. 

Launched as an article 9 sustainable fund, Convent Capital explained last year that this fund offers growth capital to innovative and sustainable agrifood companies in the 37 OECD (Organization for Economic Co-operation and Development) countries. Each investment made through the fund will range from EUR5-20 million with a focus on ventures that have stretched beyond venture into their growth phase.

Under this mandate, the fund focuses on investment in innovative and sustainable food and agriculture businesses operating in the EU with a mission to generate both financial returns and positive environmental impact by supporting companies committed to improving the sustainability and efficiency of our food chains. 

The fund’s sectoral approach leverages the massive untapped potential for both sustainability impact and financial returns that exist in the agri food industry. Adding to this potential, Bor Boer and Steve McLoughlin, who joined Convent in 2021, add to the firm’s industry knowledge, network, and deal flow pipeline as it strives to drive a transition from the current linear economy to a circular one.

“We are thrilled to have reached this important milestone in the growth of our Food and Agri Impact Fund.” said Bor Boer, principal, Convent Capital’s Principal. “We believe that sustainable food and agriculture are critical to the future of our planet and we are proud to have the support of investors like a.s.r. who share our values and vision. As one of the largest investors in Dutch agricultural land, working with a.s.r. will offer our portfolio companies a great link to the Dutch primary agricultural sector.”

A.s.r. is a leading impact investor managing about 43,000 hectares of agricultural and horticultural land, and ranking among the top 10 percent of most sustainable insurers in the world, according to Dow Jones Sustainable Index. Through its support of biodiversity, a.s.r. counts protecting the environment as an important factor to its strategy, resulting in significant capital commitments to reducing carbon emissions, and for the promotion of sustainable use of the land. 

“We are pleased to support the AgriFood Growth Fund as it invests in innovative and sustainable food and agriculture businesses,” said Raquel Criado Larrea, head of sustainable investment, a.s.r. “As a responsible investor, a.s.r. believes in investing in businesses that are committed to creating positive social and environmental impact, and we are excited to partner with Convent Capital in this important mission.”

Toward this mission, the fund has already made investments in several transformative companies including phytogenic feed additive company AHC, and bio-based chemical company Chaincraft. 

The fund’s most recent investment was as the lead in the $43 million round for BeeHero – the world’s leading precision pollination company – in December 2022. Joining Convent Capital in the round were General Mills, Cibus Capital (formerly ADM Capital), Rabobank, MS&AD, Firstime, J-Ventures, Plug&Play, iAngels, Gaingels, UpWest, and others. 

BeeHero explained in December that it’s a data-driven technology company redefining pollination in commercial agriculture by using advanced analytics, AI, and low-cost IoT sensors to bring transparency and efficiency to the complexities of commercial crop pollination.

The company’s Precision Pollination as a Service platform enables commercial beekeepers to remotely track and monitor their hives, using data to bring a new understanding and connection between farmers, bees, and their stewards, the beekeepers.

It is innovative ventures such as this with the power to generate both financial returns and positive impact that the AgriGrowth Fund’s team of experienced investors and sector experts stated they will continue to identify and support.

~ 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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