It is a European Private Equity Fund, a closed vehicle that matures at seven years, registered and regulated by the CNMV (National Securities Market Commission) and designed to channel investor capital toward interesting Real Asset classes such as agricultural holdings, which until now could only be accessed by institutional investors or major clients.
The financial objective of the fund is to acquire a number of agricultural holdings with clear potential for improvement via transformation, the introduction of the ideal and most profitable crops, and the optimization of management making use of new technologies that improve productivity and profitability. All of this while always keeping the focus on sustainability and efficiency.
In this regard, the fund is seeking to reach very attractive returns, of between 10% and 12%, completely uncorrelated from the traditional financial markets, and sustainable in the long term via the management of a portfolio of agricultural holdings, well diversified by crop and geographical area, and selected due to their high potential for revaluation and performance.
Conscious of our ability to transcend the merely financial aspect of investment, we are also prioritizing the social impact objective in the management of estates, aligning ourselves with the United Nations’ Sustainable Development Goal (SDG) 8, which refers to “sustainable economic growth and decent work for all” . We are doing this via management that contributes to mitigating the demographic exodus, promoting economic development in rural areas, and the retention of agricultural employment.
Likewise, the environmental impact of agricultural activity requires a sustainable and respectful focus on the use of natural resources and with biodiversity. With this focus, we are aligning our portfolio with SDG 12 covering ““Responsible Consumption and Production”” and SDG 15 about “Life on Land”, setting out the target of at least 30% of the land being managed under environmental rules, in line with the EU Green Deal strategies on “Biodiversity” and “From the Farm to the Table”, which seek to accelerate the transition of the food-production system toward sustainability, accessibility and improvement of production quality.
Our investment strategy in Sustainable Agriculture seeks to take advantage of this major long-term investment strategy, contributing to this transformation and helping the sector to be more resilient, competitive and sustainable.