Toesca Asset Management and Astarte Capital Partners have announced a new fund with plans to invest US $350 million in a diversified portfolio of permanent crops focusing on regenerative and sustainable practices. The fund aims to capitalize on Chile’s competitive advantages in permanent crops and strategically expand into Peru and other Latin American markets.
The two firms have already committed around $45 million as sponsor capital to kickstart their investment strategy. The portfolio seeks to deliver strong financial returns through high-performance orchards featuring carefully selected species, all operated under the highest operational, environmental, and social standards.
Beginning in early 2025, the initial investments will concentrate on permanent crops, which are witnessing a surge in global demand due to changing consumer preferences towards healthier eating habits and their crucial role in ensuring food security.
Toesca and Astarte bring a wealth of experience in managing over 82,000 hectares of natural capital assets across South America, underscored by a track record of robust financial returns, carbon sequestration, and positive environmental and social impact.
Carlos Saieh, partner and CEO of Toesca Asset Management, expressed enthusiasm for the investment opportunity, highlighting the natural competitive advantages of Chile and Peru for fruit production. He emphasized the potential to provide counter-cyclical produce to the Northern Hemisphere within a dollarized industry, making this investment case highly compelling compared to other alternatives.
Saieh noted the increasing flow of institutional capital into the asset class in the region, indicating a growing trend that bolsters their optimism about the strategy’s future. He emphasized the attractive economics of each project, as well as the positive impact on the environment and local communities through responsible and sustainable development practices.
Toesca has successfully raised $2.3 billion of institutional capital, strategically allocating it across illiquid alternatives such as real estate and infrastructure. Teresa Farmaki, co-founder of Astarte Capital Partners, underscored the potential of regenerative agriculture investments as a burgeoning sector with significant sustainability and food security implications.
Farmaki highlighted the environmental and social benefits of developing sustainable agricultural assets, aligning perfectly with their commitment to responsible business practices. The fund’s investment strategy is poised to leverage the growing demand for permanent crops, driven by consumer trends towards healthier food choices and the imperative of ensuring food security.
By focusing on regenerative and sustainable practices, the fund aims to not only generate strong financial returns but also contribute to mitigating environmental impact and supporting local communities. The emphasis on high operational standards and responsible development practices underscores the fund’s commitment to creating lasting value beyond financial gains.
In conclusion, the partnership between Toesca Asset Management and Astarte Capital Partners represents a significant step towards harnessing the potential of regenerative agriculture investments in Latin America. With a focus on permanent crops and sustainable practices, the fund is well-positioned to deliver both financial returns and positive environmental and social impact, setting a new standard for responsible investment in the region.