New Agri+ Fund from Traditum aims to attract new investors to agriculture sector
A pioneering new fund from Traditum Private Equity aims to attract new investors to the agricultural sector.
The Agri+ Fund provides an opportunity to support the rural economy and decarbonisation of agriculture while achieving asset-backed, tax-efficient returns. The fund will acquire UK farmland and invest in innovative ways to add value – for example by adopting new technologies and practices, improving biodiversity and leveraging the land’s natural ability to absorb carbon.
Traditum is working with the UK’s leading land agents and has already identified a number of suitable investment opportunities.
The launch of the Agri+ Fund comes as farmers face a number of key challenges, such as food security and traceability, decarbonisation and adapting to the post-Brexit subsidies regime which will reward them for protecting the environment.
Leading the new fund is Stephen Pickup, Traditum’s head of agriculture. Stephen started his career in M&A before becoming CEO of some of the largest corporate farms in Europe. He joined Traditum from Prodimex Farmland which operates over 900,000ha of farmland in Eastern Europe.
Stephen Pickup says: “Historically agriculture has not been seen as a mainstream investment because it is capital intensive and requires specialised management. However we are looking to change that. We believe agriculture is on the cusp of a revolution thanks to a new generation of entrepreneurs and innovators who are bringing a fresh approach and new solutions to the structural issues the sector faces.
“The Agri+ Fund aims to deliver notable returns while tackling key challenges such as decarbonisation and food security which are going to be with us into the future. Farmland is in limited supply and we strongly believe valuations will rise as innovation is rolled out.”
Traditum’s CEO, David Mitchell adds: “Farmland is a safe haven asset that holds up well in periods of uncertainty and acts as a hedge against rising inflation and interest rates. In the coming decade, technology will offer the potential to improve yields while new ‘green’ initiatives which give land additional value as a way to achieve net zero. These, together with the growing demand for high-quality food, will only serve to increase land values.
“Many of our high-net-worth clients have a real empathy with rural communities and would love to invest in projects that support local food production, create jobs and protect nature. However short of buying their own farm or investing in a large property fund, they have had little chance to do so. The Agri+ Fund