March 3, 2021

By Lynda Kiernan, Global AgInvesting Media

Walter Global Asset Management (Walter GAM) has partnered with the management team of Bonnefield Financial to acquire a majority stake in Bonnefield, the leading farmland investor in Canada.

Walter GAM was launched in 2018 as part of Walter Financial, the investment unit of the Walter Group, which has been a successful business ecosystem for almost 70 years.

“Bonnefield’s strong team has driven phenomenal growth over the past decade, to reach nearly one billion dollars of assets under management currently,” said Sylvain Brosseau, CEO and founding partner, Walter GAM.

Founded in 2009, Bonnefield is a leader in responsible, sustainable investment that sources, assesses, manages, and finances farming operations across Canada as the top land-lease finance facilitator in the country – providing the capital needed by Canada’s agricultural producers to achieve their targeted growth through sale-leaseback agreements.

“Our ultimate goal is to promote sound farmland management practices, help improve operator efficiencies and protect the integrity of Canadian farmland, which we believe are core to protecting and enhancing long-term returns for our investors,” stated Bonnefield on its website.

With $900 million in current assets under management (AUM), Bonnefield’s ag portfolio consists of approximately 125,000 acres through 120 leases across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, and Nova Scotia. 

In late 2019 the firm announced the first close of its Bonnefield Canadian Farmland LP V (Fund V) at C$137 million (US$103.3 million). Launched as an open-ended vehicle, Fund V is building a diversified portfolio of core farmland across Canada, and targets institutional and accredited investors who are increasingly seeking out open-ended investment structures in their real asset portfolio, according to the firm.

“The open-ended structure offers important liquidity characteristics that suit a broad range of institutions across Canada,” said Andrea Gruza, VP of Capital Markets, Bonnefield, at the time.

It is such well-positioned agricultural funds that hold a particular shine for Walter GAM. Considering current market volatility and low fixed income yields, diversifying into farmland offers Walter GAM a high-quality, in-demand asset class that generates stable, uncorrelated returns, which also proves effective as a hedge against inflation.

“This asset class is increasingly attractive to institutional and private investors,” noted Brosseau, “…which puts Bonnefield in a strong position when it comes to growing its portfolio of Canadian farmland and expanding its offering to farmers and investors through the development of additional innovative investment strategies.”

Through this deal, the Bonnefield management team will remain in place with the firm continuing to be independently operated. As such, the management team also will be acquiring an increased stake in Bonnefield, with the goal in mind of increasing alignment through greater employee ownership over time.

This deal will also avail the Bonnefield management team of the expertise inherent in Walter GAM that can help leverage its leading position toward even greater growth and potential. 

“In Walter GAM, Bonnefield has found an ideal partner to help us achieve our long-term vision for our company,” said Tom Eisenhauer, president and CEO, Bonnefield.

“In addition, Bonnefield should benefit from Walter Global Asset Management’s multifaceted support through its next ambitious stage of growth, while creating with this transaction a true win-win situation for all of our stakeholders.”

For Canada’s farmers, this deal will expand access to capital through both Bonnefield’s purchase and lease offerings, and through the expanded future suite of products that will help farmers reduce financial risk as they transition and grow. 

The country, too, will benefit as Bonnefield continues to be dedicated to its mission of “protecting farmland for farming”, and being a steward enhancing the sustainability of Canadian agriculture for the long term.

“It has been a privilege participating in the creation of Canada’s largest, most successful farmland investment company that has protected farmland while helping Canadian farm families,” said Jan Kaminski, president of Colonnade Investments and co-founder of Bonnefield. “It has been an extremely fulfilling venture and we wish Bonnefield and Walter GAM all the best in taking Bonnefield to new heights.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.