April 12, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Amsterdam-based investment firm Convent Capital announced the launch of its new Agri Food Growth Fund with initial capital commitments of more than EUR50 million (US$54.16 million) from its network of investors, and plans to grow the fund to EUR150 million (US$162.48 million), or more. 

Founded in 2011, Convent Capital’s 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, popular 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

This new fund will offer 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 focus on companies that have stretched beyond venture into their growth phase, and each commitment will range from EUR5-20 million (US$5.42 million – $21.66 million).

Under this mandate, B2B businesses, from service to distribution, acting within the agrifood value chain, will be eligible for funding, however, retail will be considered to be outside the scope of the fund.

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 and network, and deal flow pipeline as it strives to drive a transition from the current linear economy to a circular one.

Convent Capital’s sustainability conditions require that each investment must generate demonstrable impact, which will be measured against the UN SDGs, with a focus on climate and biodiversity (SDGs 2, 12, 13, 14, and 15).

An independent investment committee, in addition to consultant MJ Hudson, will actively assess during and after the tenor whether these impact objectives have been met. If they have not, Convent Capital stated that it will then donate carried interest to a sustainable charity.

“Through its reduced risk strategy, Convent Capital finances fast-growing companies with proven technologies and business models,” said Bor Boer, principal, Convent Capital’s Agri Food Growth Fund. “This is a promising and relatively underfunded segment within AgriFood, an industry that will play a crucial role in the sustainable development of and quality of life on our planet.”

In parallel to the launch of this new fund, Convent also announced its first investment in Animal Health Concepts (AHC), a Dutch animal feed company manufacturing liquid, phytogenic-based food additives for poultry, livestock, and shrimp feed rations which drastically reduce the need for antibiotics, and improve the food conversion ratio. 

“Convent Capital’s investment brings us ‘smart money’ and crucial sector expertise,” said Martijn Adorf, CEO, Animal Health Concepts. “This will enable AHC, with operations in 20 countries, to grow at an accelerated pace globally. This collaboration brings the animal protein industry the much-needed stimulus to accelerate its sustainability efforts.”

Lynda Kiernan-Stone is editor 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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