Treetops Capital Agribusiness Fund LP

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.

Financial description

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.