By Lynda Kiernan, Global AgInvesting Media
Pontifax AgTech Management announced the final close of its second fund – Pontifax Global Food and Agriculture Technology Fund II (Fund II) at $302 million.
These capital commitments led Fund II to surpass its hard cap of $300 million to close oversubscribed, bringing Pontifax AgTech’s current AUM to $465 million.
Founded in Santa Monica, California, in 2013, Pontifax is a leading 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.
Pontifax’ first fund, and the predecessor of Fund II – the Pontifax Global Food and Agriculture Technology Fund – closed in October 2017 at $105 million. Over its course Pontifax AgTech has made 11 investments, monetizing two: the first through the sale of Blue River Technology, a next-generation robotics and automation tech company working to improve crop cultivation, for $305 million to John Deere, and the second through the successful IPO of Precision Biosciences in April 2019 that raised approximately $145.4 million.
So far, Fund II has made its initial investment in Provivi – a biological crop protection startup developing a class of safer, effective, and cost-effective crop protection solutions based on the science of pheromones, naturally produced substances used by insects of the same species to influence behavior and facilitate mating.
“Food demand is expected to double in the next three decades, while production is constrained by diminishing supplies of land, water and labor, coupled with increasing regulation,” said Phil Erlanger, co-founder and managing partner, Pontifax AgTech.
“The current pandemic has only highlighted issues of food security and makes improving agricultural productivity, nutrition, and supply chain efficiency of paramount importance for global health and sustainability. We are focused on pursuing disruptive technologies that result in healthier food while providing attractive returns for our investors.”
Indeed, food and agriculture is the second-fastest growing business sector in the world today. Valued at $13 trillion, the sector employs nearly 40 percent of the global population, and coupled with the increasing per-capita consumption of protein, is presenting an investment class that is answering the global challenge of meeting food demand in a sustainable and responsible way.
This strong narrative has rung true, attracting commitments for Fund II from institutional investors including domestic and international financial institutions, state pension funds, university endowments, foundations, investment firms, large-scale growers, and family offices.
“We are grateful for a strong, positive response to Fund II from both existing and new institutional investors. Sophisticated investors are increasingly discovering the agriculture and food technology sector as a means to diversify their alternatives strategies and as an opportunity to make a significant impact on sustainability,” said Ben Belldegrun, co-founder and managing partner, Pointifax AgTech.
“Our growth capital strategy offers investors a compelling risk/return investment profile while benefiting food security, climate change, grower well-being and consumer health.”
– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com
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