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Convent Capital introduces Agri Food Growth Fund
New fund of €150 million invests in innovative, sustainable AgriFood business growth market
Convent Capital announces the launch of its new Agri Food Growth Fund, which offers growth capital to innovative and sustainable companies in the AgriFood industry. The fund has raised more than €50 million in capital from its investor network and will in the coming months acquire capital from institutional investors to grow to €150 million or beyond. Its first investment is in an innovative manufacturer of plant-based animal feed additives.
The new fund of the Amsterdam-based investment firm delivers growth capital from five up to twenty million euro to innovative and sustainable AgriFood businesses in the OECD region. It focuses on so-called growth capital, the investment phase immediately following venture capital.
Bor Boer, Principal of Convent Capital’s Agri Food Growth Fund, said: “Through its reduced risk strategy, Convent Capital finances fast-growing companies with proven technologies and business models. 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.”
B2B businesses across the AgriFood value chain are eligible for funding, from service to distribution. Only retail (the so-called last mile) is outside the investment scope. The sustainability conditions of Convent Capital prescribe that each investment must generate demonstrable sustainability impact. This is measured along the SDGs, with a focus on Climate and Biodiversity (SDGs 2, 12, 13, 14 and 15). An independent investment committee as well as consultant MJ Hudson assess during and after the tenor whether impact objectives are achieved. If not, Convent Capital will donate carried interest to a sustainable charity.
In parallel with the launch of the fund, Agri Food Growth Fund today also announces a first participation in Animal Health Concepts (AHC). This investment offers AHC a pathway to accelerated growth in the coming years. The Dutch animal feed company manufactures liquified, phytogenic-based food additives for poultry, livestock, and shrimps which drastically reduce the need to administer antibiotics, and improve the food conversion ratio.
Martijn Adorf, CEO of Animal Health Concepts, said: “Convent Capital’s investment brings us ‘smart money’ and crucial sector expertise. 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.”
Convent Capital was founded in 2011. Its successful first fund, a cross-sector private equity vehicle focusing on financial and circular growth, has been operational for more than ten years. In 2014, the fund acquired a majority equity stake in the Creators of the Outside World (CROWD), a young and innovative group of established companies, with annual turnover of nearly £70 million and 378 employees across Europe. CROWD recently strengthened its position on the UK market by purchasing the Bailey Street Furniture Group (BSFG).
The Agri Food Growth Fund was developed following popular demand from investors that were not able to participate in the first fund and recognised the potential of combining Convent Capital’s experience with growing companies, as well as the exciting prospects of providing growth capital to companies in the AgriFood industry. The fund’s sectoral approach leverages the AgriFood industry’s vast untapped potential, both in terms of sustainability impact and financial return. Bor Boer and Steve Mcloughlin, who joined Convent Capital in 2021, contribute further to the firm’s extensive industry knowledge, strong industry network, and solid deal flow pipeline. Moreover, currently committed capital comes mainly from strong investors with an excellent AgriFood track record.
About Convent Capital
Convent Capital, founded in 2011, is an independent investment company from the Netherlands. Its first fund focused on Benelux-based SMEs with a strong track record and strategic and operational capabilities. Its new fund, Agri Food Growth Fund, brings growth capital to innovative and sustainable companies in the agricultural and food industries, and aims to generate a positive impact through every investment.
Convent Capital has a strong focus on sustainability and believes in the transition from the current linear economy to a circular economy. The firm proves that companies that invest in this now will ultimately be the winners of the future. Its long-term strategy creates sustainable, high returns for its stakeholders.