Paine Schwartz Partners, a US-based private-equity investor, has successfully concluded a fund aimed at the food and agribusiness industries, securing $1.7 billion in capital commitments.
Paine Schwartz Partners surpassed the initial goal for its Paine Schwartz Food Chain Fund VI, raising over $1.5 billion. The New York-based investor referred to this achievement as “the most substantial fund exclusively focused on investing throughout the food and agribusiness value chain.”
Since 2010, Paine Schwartz Partners, managing $5.7 billion in assets, has been dedicated to investments in the food and food-related sectors. In 2014, the company initiated its inaugural food-chain fund.
Fund VI represents Paine Schwartz’s most substantial fund thus far, boasting a 17% increase compared to its previous $1.4 billion Fund V. The company noted that the new fund drew interest from a wide range of investors, including pension funds, sovereign wealth funds, endowments/foundations, family offices, and other institutional investors with a focus on real assets, private equity, and impact-oriented investments.
The fund’s primary focus will be on sustainable investments within the food and agribusiness sector. It will prioritize businesses that promote increased agricultural productivity while simultaneously reducing resource consumption. Additionally, the fund will target companies that facilitate access to healthier, more nutritious, and safer food options.
Recently, Paine Schwartz spearheaded a consortium that successfully secured a $1.58 billion takeover offer acceptance from the Australian fresh produce firm, Costa Group. Notably, around 40% of Fund VI’s capital has already been utilized, encompassing the Costa Group transaction, as well as investments in AgroFresh Solutions, Elemental Enzymes, HGS BioScience, and Monterey Mushrooms.
Kevin Schwartz, the investor’s CEO, said, “Our ability to exceed our initial fundraising target in a challenging market environment reflects our firm’s track record and the continued resonance of our sustainable investment focus with investors.
“With Fund VI, we are continuing to invest to feed a growing population better food with more efficient use of resources. Food and agribusiness has been the fastest-growing sector for more than 15 years and continues to be underserved by the investment community.
“Guided by our core themes, we are targeting investments in segments associated with long-term growth that have limited commodity exposure and limited private-equity competition.”
Investors in the fund included the District of Columbia Retirement Board and the Connecticut Retirement Plans and Trust Funds.