InvestEco Sustainable Food Fund II
Last updated 11 May 2020, by Impactyield.
InvestEco Sustainable Food Fund II makes equity or quasi equity investments in small to medium-sized private sustainable agriculture companies with positive environmental benefits including improved soil quality and water conservation in Canada.
Using a rigorous due diligence process, the Fund aims to acquire Portfolio Investments in what the General Partner believes to be exceptional companies operating in the Sustainable Food sector. These investments will generally be made in North American-based businesses that the General Partner believes to have some or all of the following characteristics: established revenues, strong growth prospects, excellent management and significant competitive advantages, as well as the prospect of providing a profitable exit opportunity within 4 to 7 years from the date of initial investment. Although the Fund will have a preference for profitable companies, it may also invest in companies that are pre-revenue and/or not yet profitable.
Key performance indicators
Asset manager: Investeco Capital Corp.
Product track record: Fund has 7 years of track record
Target IRR: 20%
Committed Capital: 26,000,000 CAD (Canadian Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Canada
Product status: Closed - still investing
Inception year: 2015
Vintage year: 2015
Target close date: 01/08/2016
Product term: 10 year term
Assets under management: 26,000,000 CAD (Canadian Dollar)
Investment size: Min: 500,000; Max: 5,000,000; Avg: 2,000,000
Currency of investments: CAD (Canadian Dollar)
Currency for fund / product figures: CAD (Canadian Dollar)
Fund investments to date: 1
Fund investments to date exited or repaid: 0
Management fee: 2%
Carried interest: 20%
Hurdle rate: 8%
GIIN Investors' Council Investment: No
Limited Partners / Investors: Co-operators, Meritas SRI Funds
Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
In addition to being a good investment opportunity, sustainable food companies have many positive environmental and social benefits. From an environmental perspective, in comparison to most conventional agriculture, sustainable agriculture can potentially improve soil quality, conserve water and energy and reduce carbon emissions from farming, while maintaining competitive yields for farmers. From a social perspective, the practice of sustainable agriculture improves the chances that a farmer will be prosperous through higher product prices and lower input costs, creates healthier, chemical-free, working conditions for farm workers and produces more nutrient-dense and less chemical-laden food for consumers. As a result of these social and environmental benefits of the Fund, the Manager has become a registered B-Corp and the Fund has become a Global Impact Investing Rating System (GIIRS) Pioneer Fund, underlining our commitment to having a positive environmental and social impact.