September 10, 2020
In meeting one of society’s most fundamental needs, investments in Ag can come in many forms. The sector’s diversity and resiliency have been on full display during various economic downturns (including those arising from the efforts to stanch the spread of Covid-19). In this way, Agriculture is not unlike infrastructure and real estate.
Although we find the rationale compelling for investing in Agriculture, several historical barriers have made it difficult for institutional investors to deploy at scale. In the last 15 years, however, the sector has made several inroads to becoming a realistic investment option for large, sophisticated investors. There are more managers that can provide access to the space and more vehicles for doing so: Secondaries and co-investments are becoming common.
In other words, we believe Ag is ripe for institutional investment and a natural extension of LPs’ existing real-asset portfolios.