The Agri-food value chain offers a growing number of attractive investment opportunities, driven by some compelling global trends. Since 2005 the number of funds operating in the sector has exploded by over 1000%, managing over $70 Billion in aggregate ….
Key Trends
Over the last decade, the share of private sector investment in food and agribusiness has grown relative to public sector investment. In 2010, 62% of assets under management (AuM) were represented by public strategies, while in 2017 this has fallen to only 11%.
Agriculture has a huge responsibility to feed the growing global population, however the task is challenging due to depleting resources and limited area of productive or arable land. In line with the challenges faced by investors, some key trends are emerging, including:
Continued growth across farmland investments and private equity;
Increasing prominence of venture capital and private debt investment;
A surge in innovation driven investment decisions; and
More focus on value-add endeavours.
Major aspects driving these trends include:
Growth in demand for food; and
Increasingly urgent need to produce more efficiently and sustainably.
Historically, public investment funds prevailed due to the risky nature of agri-food investment, however a shift from public strategies to private strategies is apparent.
There is a growing prevalence of private equity funds, as well as niche investments such as venture capital in ag-tech and even private debt. These trends signal an evolving shift towards more innovative and value-add investment strategies.
As Farrelly and Mitchell's co-founder and Managing Director, Malachy provides unmatched expertise. Working alongside CEO's, executives, and leaders from public and private sectors, Malachy empowers agribusinesses to fully achieve their potential.
Empowering global food and agribusinesses to make the right decisions
We believe that with the right guidance, your agribusiness can grow. We create value for our clients by empowering them with tailored, evidence-based insights. Our team removes uncertainty and identifies opportunity, paving the way to sustainable growth and profitability.
