Convent Capital launches growth fund targeting agri-food businesses, invests in Dutch feed additive firm
“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,” said Martijn Adorf, CEO of the feed additives manufacturer, which produces liquified, phytogenic feed additives for animal production aimed at reducing antibiotic use in those sectors while boosting FCR.
AHC’s products are targeted at the broiler industry, in particular, but it also sells into the layer, turkey, swine and ruminant markets.
The feed additive firm's sustainability profile, the antibiotic reduction capabilities of its portfolio along with the plant-based nature of its products appealed to the investors, said Bor Boer, principal, Convent Capital's Agri Food Growth Fund.
"AHC represents the first investment of the fund and in the sector. We are evaluating a number of other companies with potential applications in the feed industry," he told this publication.
Growth capital
Convent said its new fund focuses on growth capital, the investment phase immediately following venture capital. It was set up to provide financial backing of up to €20m to innovative and sustainable agribusinesses in the OECD region.
"We are looking for established companies that require growth capital to scale up their business (organically or through buy and build) and, alongside the capital, will leverage Convent’s investor experience shareholder and our global AgriFood network," continued Boer.
The Amsterdam-based investors have raised more than €50m (US$54m) in capital from their investor network for the new financing vehicle and they are set to acquire further capital from institutional investors to grow the fund to €150m in the coming months.
Convent supports the transition from the current linear economy to a circular one; the fund managers' goal is for each investment to generate demonstrable sustainability impact, which they will track using the UN SDGs linked to climate and biodiversity as a reference point.
“The fund’s sectoral approach leverages the AgriFood industry’s vast untapped potential, both in terms of sustainability impact and financial return.”
Founded in 2011, Convent Capital's first fund, which was operational for over 10 years, was focused on SMEs in the Benelux that had a strong track record and strategic capabilities.
