Futuregrowth Agri- Fund 2
Last updated 11 May 2020, by Impactyield.
Futuregrowth Agri-Fund 2 is a closed-end private equity fund managed by Futuregrowth Asset Management and advised by UFF African Agri Investments.
Futuregrowth Agri-Fund 2 makes socially and environmentally responsible debt, equity and equity-related investments in farmland and related agricultural infrastructure in South Africa seeking both attractive financial return while at the same time poverty alleviation in South Africa.
UFF- African Agri Investments and Futuregrowth believe that investments in farmland and related agricultural infrastructure in South Africa offer a relatively untapped opportunity to invest in an inefficient market while simultaneously providing capital needed to expand and positively impact the agricultural sector. In order to address the financial needs of low income people, the Fund engages in initiatives to facilitate broad-based economic empowerment in general, and more specifically, economic beneficiation of farm workers.
UFF - African Agri Investments is a South African based investment management company specialising in agricultural investments in African countries. UFF is supported and partly owned by Old Mutual, Africa's largest financial services group
The Old Mutual African Agricultural Fund, part of Futuregrowth’s suite of development impact funds, invests in farming and farming operations. The Fund seeks to achieve long-term financial returns; and tangible social and developmental impact.
The objective of the Fund is to facilitate the creation of world class agricultural farms in Africa to meet the global demands and security for food. Fund focus areas include: row crops (i.e. cereals and cane), permanent crops (i.e. citrus and deciduous fruit), timber, cattle and dairy.
OTHER STRATEGIC CHARACTERISTICS:
- Minimum initial investment per farm: USD 5 million, but must be able to expand and consolidate to USD 15 million in the short term
- Social impact: the investment model addresses agricultural initiatives that lead to land development and conservation, environmental reform, employment, health care, community ownership, housing, education, and food security
Equal rights to ownership basic services technology and economic resources
Encourage companies to adopt sustainable practices and sustainability reporting
Sustainable food production and resilient agricultural practices
Universal access to sexual and reproductive care, family planning and education
Free primary and secondary education
Develop sustainable, resilient and inclusive infrastructures
Key performance indicators
Asset manager: UFF African Agri Investments
Product track record: Fund has 8 years of track record
Target IRR: 17%
Committed Capital: 45,000,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: South Africa
Product status: Closed - still investing
Inception year: 2014
Vintage year: 2014
Target close date: n.a.
Product term: 10 years +2x 1-yr ext
Assets under management: 500,000,000 USD (US Dollar)
Investment size: Min: 3,000,000; Max: 25,000,000; Avg: 10,000,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 4
Fund investments to date exited or repaid: 0
Management fee: 1.75%
Carried interest: 20%
Hurdle rate: 12%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: Pension fund, Other Institutional investors
Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors, Retail Investors
UFF- African Agri Investments implements, supports and monitor various best practice ESG standards and guidelines for farming; promoting environmental sustainability, respecting labour and human rights, respecting land and resource rights and high ethical standards. All farms are Global G.A.P certified by independent auditors, reassuring consumers about how food is produced on the farm by minimizing detrimental environmental impacts of farming operations, reducing the use of chemical inputs and ensuring a responsible approach to worker health and safety as well as animal welfare. On all farms, next to financial due diligence, Environmental Social Governance is assessed and monitored thereafter, according to the Worldbank’s International Finance Cooperation (IFC) ESG Standards. The minimum annual spend on combined educational and healthcare programs, is 0,5% of invested capital and/or investment value.
As most farm workers currently do not have access to health care, on majority of our farms, primary health care services (optometry, dentistry, unlimited access to doctors & prescribed medicine) are provided by partner CareCross for permanent workers. A specific Agri – sector training program is made, ranging from basic agricultural education, literacy and numeracy training up to educating farm workers to become independent competitive farmers in the foreseeable future.