by Lynda Kiernan

A transaction report released in June indicates that Texas Teacher Retirement System (TRS) committed a total of $1.1 billion across five alternative investment strategies. 

Included in these transactions was an allocation of $100 million from TRS’ energy/natural resources/ infrastructure portfolio to Padawan, a separate account connected with Paine Schwartz Partners’ Paine Schwartz Food Chain Fund V.  This commitment comes six months after TRS invested $150 million in Fund V in December 2018.  

With 20 years of experience, Paine Schwartz focuses its capital on investments exclusively in sustainable food chain opportunities. Working within a research-intensive investment framework, Paine Schwartz employs a primary research, thesis and operationally-driven approach that when combined with the firm’s domain expertise and deep well of industry relationships has been able to unlock growth by securing control positions through deals that exist beyond competitive auction processes, according to the firm’s website. 

This is the second capital commitment by a pension fund connected to the food chain this month. Only a matter of weeks ago, the Ontario Municipal Employees Retirement System (OMERS) and the Bank of Montreal committed $33 million (US$25.2 million) to District Ventures Capital, a venture fund dedicated to investing in innovative early-stage companies in Canada’s food, beverage, health, and wellness sectors. 

Looking a little further back, in January of this year, the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, acquired a majority stake in Australian diversified farming business BFB Pty Ltd, from Proterra Investment Partners for a reported $208 million. 

And Canada’s largest single-profession pension fund, the C$191 billion Ontario Teachers Pension Plan (Ontario Teachers), made an announcement in November 2017 that was a first for the fund – its maiden investment in aquaculture, acquiring Atlantic Aqua Farms from San Francisco-based Encore Consumer Capital for an undisclosed amount.

This deal, which was reportedly valued in excess of C$100 million, fell under the manager’s  “…natural resources mandate to invest in the global food basket, with an eye on sustainable sources of food production,” according to a released statement at the time. 

“Demand for protein is increasing, and in the context of land constraints and environmental considerations, aquaculture is among the most sustainable sources to meet this demand,” said Andrew Claerhout, senior managing director, Infrastructure and Natural Resources, upon the announcement of the allocation. “Atlantic Aqua Farms has built a significant aquaculture platform, underscoring the significant opportunities for long-term growth in this space.”

 

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.