Stockholm (NordSIP) – responsAbility, the $3 billion Swiss investment boutique, has launched a private debt fund focused on sustainable agriculture in developing and emerging market countries to capitalise on the need for increased food demand, as global and regional populations continue to grow.
The fund, which is based in Luxembourg, has received anchor investment from Kempen Capital Management, a Dutch investment boutique, to invest across the agriculture value chain and provide private debt financing to sustainable companies with the objective of improving the economic livelihoods of rural populations. The capital will be used for short-term export and working capital financing as well as medium-term financing of investments.
The Agriculture fund will use stringent selection criteria, a clearly defined ESG risk process and optimised collateralisation structures to reduce credit risk. It joins responsAbility’s Fair Agriculture fund for Swiss investors launched in 2011, which manages assets worth $177 million across 113 companies in 44 countries as of end March 2018. The new fund will target primarily European investors seeking access to the agricultural market.
Commented Roland Pfeuti, Head of Investment Solutions & Sales at responsAbility: “We are pleased to make this potential accessible to investors outside Swotzerland as well, in a fund structure that they are familiar with.”
Image: (c) W_Stock-shutterstock.com