Treetops Capital Agribusiness Fund LP
United States of America
Last updated 12 May 2020, by Impactyield.
Developed countries (203) / More developed regions (202) / Eastern Europe (4) / Romania (1)
The Partnership was formed with the investment objective of generating both current income and substantial long term gains by making debt and equity investments in a small portfolio of (“SMEs”) in the Romanian agribusiness sector while having a positive social and environmental impact.
The fund targets businesses that strongly benefit smallholder farmers and there is a technical assistance program provided by the Mennonite Economic Development Association (MEDA) to provide farmer training, market linkages, etc. All investments are made according to sustainable farming practices.
OPIC is providing a financing facility to support the individual agribusinesses. Separately, the European Union has provided non-reimbursable grants for approximately 40-50% of the value of each portfolio company, which adds substantial credit cushion to LPs as well as potentially enhances returns. There will be $24 million invested out of which $3 million is from LPs, $10 million from OPIC, and approximately $11 million in grants from the European Union.
There is a strong opportunity to employ modern technologies to increase efficiency and production while creating jobs in rural communities and lifting individuals out of poverty.
The Treetops team shares a common vision that strong financial performance is intertwined with social and environmental sustainability. Investments in the emerging lower and middle classes in developing countries in agribusinesses represent a strong opportunity to make financial returns and a sustainable impact. Treetops implements technology and international best practices where possible to enhance financial, social, and environmental performance.
of track record
the year funded
Key performance indicators
Asset manager: Treetops Capital LP
Product track record: Fund has 10 years of track record
Target IRR: 40%
Committed Capital: 2,400,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - post first close
Style/Stage: Seed Stage
Inception year: 2013
Vintage year: 2013
Target region: Developed countries, Eastern Europe, More developed regions, Romania
Target close date: 01/11/2014
Product term: 10 year term
Assets under management: 3,500,000 USD (US Dollar)
Investment size: Min: 0; Max: 0; Avg: 0
Co-investment policy: LPs have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 2
Fund investments to date exited or repaid: 0
Management fee: 2.4%
Carried interest: 30%
Hurdle rate: 8%/20%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: 646-257-2479
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• Increase local production and competitiveness through introduction of new technologies
• Address growing food shortages
• Strengthen SME participation in the agribusiness sector
• Create employment opportunities for Romanian workers
• Utilize energy efficient construction and operating methods
• Incorporate renewable energy sources
• Engage in sustainable agricultural practices