By Gerelyn Terzo, Global AgInvesting Media
New Agriculture, the asset management division of Sydney, Australia-domiciled parent firm New Forests, has launched a new investment vehicle with a reported target size of A$750 million. The fund strategy is to acquire high-profile assets to complement its existing portfolio holdings, including Lawson Grains and the Kimberly Cattle operation. GAI News has confirmed that New Ag has set its sights on an IRR of 9 percent to 11 percent over the course of the 12-year closed-end fund.
Launched in 2022, New Agriculture has seen its assets under management balloon to approximately A$1.5 billion over that short stretch of time, which is mostly invested across Australia and New Zealand. New Forests Asset Management has come a long way since its incorporation some 20 years ago, at which time the Australian government controlled much of the region’s forests. The firm has been overseeing forestry assets as part of its strategy ever since, launching New Agriculture a few years ago to serve as a platform for large-scale sustainable ag investment and operations management.
Since its launch, New Ag has completed major acquisitions, including Lawson Grains’ massive cropping portfolio, spanning 90,000 hectares, and another 3 million hectares of cropland in East Kimberley. Now the firm has set its sights on attracting a wider swath of investors to its new fund, including institutional and high-net-worth individuals, reports indicate. New Ag’s fund strategy focus on row crops, livestock and horticulture in addition to tangential agri-business infrastructure and processing platforms.
New Forests Managing Director for Australia and New Zealand David Shelton said, “New Forests is recognized as an industry leader, with an established track record of nearly 20 years across both forestry and agriculture. Our approach has always focused on optimizing land use, incorporating multiple revenue streams and environmental outcomes. This strategy represents a logical expansion of that approach and our expertise in this area.”
New Agriculture Director of Agriculture Bruce King stated, “With the global population expected to reach 10 billion by 2050, and rising demand for sustainable food and fiber, there is a strong imperative to produce food and fiber more sustainably and to protect natural resources.
As GAI News already reported, New Forests recently introduced the Future Forests Innovation Fund through a partnership with Oji Holdings. That investment vehicle was registered as an open-ended Variable Capital Company (VCC) in Singapore, has received a capital injection of $300 million from Oji Holdings alongside a co-investment from New Forests. The firm is accepting outside investors into that fund, which targets returns of 10 percent to 12 percent. Earlier this year, New Forests announced the close of its Australia and New Zealand Landscapes and Forestry Fund with approximately A$600 million in AUM.
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