Amsterdam-based Convent Capital, an independent investment firm focused on medium-sized companies, announced on Tuesday that it has launched 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 €50M in capital from its investor network and will acquire funds from institutional investors in the coming months to grow to €150M or beyond.
Bor Boer, Principal of Convent Capital’s Agri Food Growth Fund, says, “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.”
“Backing entrepreneurs that drive sustainability”
Founded in 2011, Convent Capital is an independent investment company whose first fund was focused on Benelux-based SMEs that had a ‘strong’ track record and strategic and operational capabilities. The fund has been operational for more than ten years now.
With its new fund, the Agri Food Growth Fund, Convent 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 says it has a strong focus on sustainability and believes in the transition from the current linear economy to a circular economy.
What to expect from the new fund?
The Agri Food Growth Fund was developed following the demand from investors that were not able to participate in Convent Capital’s first fund. They recognised the potential of combining Convent’s experience with growing companies and the prospects of providing growth capital to companies in the agrifood industry.
The Amsterdam-based investment firm’s new fund delivers growth capital from €5M up to €20M to innovative and sustainable AgriFood businesses in the OECD region. It focuses on so-called growth capital, the investment phase immediately following venture capital.
To deliver on sustainability conditions, Convent Capital aims that each of its investments must generate a demonstrable sustainability impact. This is measured along the SDGs, with a focus on Climate and Biodiversity (SDGs 2, 12, 13, 14 and 15).
B2B businesses across the agrifood value chain will be eligible for funding, from service to distribution. However, retail (the so-called last mile) is outside the investment scope. The startups will be assessed by an independent investment committee and consultant MJ Hudson after the tenor to determine whether impact objectives are achieved. If not, Convent will donate carried interest to a sustainable charity.
Agri Food Growth Fund makes its first investment
With the launch of a new fund, Convent Capital has also announced its first investment in Animal Health Concepts (AHC), a Dutch manufacturer of animal feed additives. This investment will help the company to accelerate its growth in the coming years.
AHC specialises in the development, production and on-farm application of water-soluble complementary feed. It offers solutions for broilers, breeders (GPS & PS), layers, swine, ruminants, and turkeys around the world.
The Dutch animal feed company manufactures liquified, phytogenic-based food additives for poultry, livestock, and shrimps, which reduce the need to administer antibiotics and improves the food conversion ratio.
Martijn Adorf, CEO of Animal Health Concepts, says, “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.”
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