By Lynda Kiernan
The Vermont Pension Investment Committee, Montpelier, has made capital commitments to two agriculture funds, allocating $100 million to the Nuveen Global Farmland Fund, and up to another $25 million to Pontifax Global Food and Agriculture Technology Fund II.
As a long-term investor, with commitments that have lasted 20 years or more, Nuveen is committed to preserving farmland, conserving water, minimizing chemical use and nutrient runoff, and protecting the rights of its tenants and local communities.
Through its affiliated asset manager Westchester, which identifies and underwrites its farmland investments, Nuveen holds 480 properties, growing 33 crop types (both permanent and row crops), across seven countries on three continents.
Population growth, rising protein consumption, and farm product demands have made sustainability and stewardship leading concerns for Nuveen which is committed to aligning with the five Principles for Responsible Investment (PRI) Farmland Guidelines backed by the UN – environmental sustainability; labor and human rights; existing land and resource rights; hugh business and ethical standards; and transparency in reporting progress toward meeting the Farmland Guidelines, according to the firm’s website.
The second recipient of up to $25 million, Pontifax Agtech, is a growth capital investor that works with its extensive network of growers, tech experts, and strategic corporate partners to make targeted investments in fast-growing businesses that are developing proven technologies that improve agricultural production, nutrition, health, sustainability, and efficiencies along ag supply chains.
The commitment from Vermont is being allocated to Pontifax’ second agtech fund, which has a funding target set of $250 million, and which will target institutional investors including (aside from Vermont Pension) fund of funds, endowments, asset managers, and insurance companies.
Founded in Santa Monica, California, in 2014, Pontifax has invested more than $350 million in over 45 portfolio companies across four funds. In October 2017, the firm announced the successful close of its first Pontifax Global Food and Agriculture Technology Fund at $105 million.
Its first exit from this fund, which is fully deployed, occurred in September 2017 when it sold portfolio company Blue River Technology – a developer of cutting-edge robotic systems that can gather precise data on a per-plant basis, including health, structure, and needs, using computer vision and artificial intelligence – to John Deere in a deal valued at $305 million.
Its second exit happened in March of this year, when its portfolio company, gene editing startup Precision Biosciences, executed an IPO, listing on the Nasdaq stock exchange raising $126.4 million, and achieving a valuation of $870 million.
– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com
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