Paris-based agribusiness focused investment firm Céréa Partenaire announced a successful first close of €300 million (US$371.5 million) of Céréa Dette II after only seven months of fundraising.
Backers of fund include Céréa Partenaire sponsor Unigrains, as well as pension funds, insurance companies, funds of funds, banks, and all existing investors who have re-invested in this second fund.
With commitments for Dette II now exceeding 300 million Euro, the fund has surpassed its predecessor fund on its way toward achieving its hard cap of 350 million Euro (US$433.3 million).
“We are proud of this success and the confidence investors have placed in our model,” said Michel Chabanel, CEO of Céréa Partenaire. “It shows, for both investors and companies, the relevance of our investment strategy which combines a thematic approach to Agrobusiness with a large palette of financing solutions ranging from buyout to debt. We are very well positioned to take advantage of attractive investments opportunities and continue supporting entrepreneurs in their growth projects.”
Led by Michel Chabanel, the Céréa Partenaire team of 24 professionals have raised more than 1 billion Euro (US$1.24 billion) in three years, effectively tripling the firm’s assets under management in that time.
The first generation of Céréa Dette was launched in early 2015, going on to be oversubscribed by 30 percent at 268 million Euro (US$332 million), which was invested across 30 mandates. The following year the firm went on to launch Céréa Capital II with 225 million Euro (US$279 million) in commitments, and Céréa Mezzanine III with an investment capacity of 200 million Euro (US$248 million).
Building upon this solid success grown from Céréa Partenaire’s innovative model which combines the deep knowledge of a thematic approach with the flexibility of a full-service investment platform, Céréa Dette II will finance buyout operations, growth investments and business funding, providing senior debt through private placements, credit, or unitranche financing with underwriting ranging between 10 million and 60 million Euro (US$12.4 million and US$74.3 million).
Vive la Revolution
This news from Céréa Partenaire comes close on the heels of an announcement made by French President Emmanuel Macron at the end of February detailing a 5 billion Euro (US$6.2 billion) investment plan in the country’s ag sector that will see the industry distance itself from traditional EU subsidies and historically held production systems. Within the framework of the investment plan, goals include to see 22 percent of France’s farmland be in organic production by 2022 – up from the current 6.5 percent. It also will support the adoption of more environmentally sound farming methods, and help facilitate the successful continuation of farming by a new generation of “agricultural entrepreneurs”.
“Let’s not be naive, we won’t fix our problems in a few months … but I want to give French agriculture a future,” said Macron reports Reuters.
Additionally, the Financial Times reports that Macron has stated that he will take measures to limit the purchase of French agricultural land by overseas buyers after the acquisition of a total of 2,600 hectares of farmland in Allier and Indre over the past two years by Chinese investors resulted in tensions.
Speaking at the presidential palace to a collective of famers, RFI reports that Macron said, “”For me, French agricultural lands are strategic investments on which our sovereignty depends, so we can’t allow hundreds of hectares of land to be bought by foreign powers without us knowing the aims of these purchases.”
-Lynda Kiernan
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