FEBRUARY 2023

THE STATE OF THE

GLOBAL FOOD & AGRICULTURE
INVESTMENT SPACE
The food and agriculture industry is one of the most important global sectors, poised for transformational changes in the decade ahead. Please
reach out to us to have a conversation about the sector and the areas most likely to benefit from the new wave of investments that is coming.

NUMBER OF INVESTMENT FUNDS SPECIALIZED IN THE FOOD

AND AGRICULTURE SECTOR BY MAIN ASSET STRATEGY

890
1000

Farmland 887 890

Private equity 826
Venture capital 800
760
Listed equities 705
Commodities
618
Private debt

INVESTMENT FUNDS Land and water restoration & conservation

499
552 600

Water entitlements
Commercial real estate 432

The food and agriculture investment space Others 380

400
341
is a nascent asset class with multiple asset 305
263
strategies across the capital spectrum. 210
174 200
146
100
61
41

0
’05 ’06 '07 ’08 ’09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 'Q1’23

AUM BY MAIN ASSET STRATEGY AND

MAIN GEOGRAPHIC FOCUS (% OF TOTAL)

The investment funds tracked by Valoral
Advisors manage an aggregate $140 Billion
in assets, with almost 80% of those AuM
concentrated in farmland, private equity and
$140
Europe and South America are poised to gain
a growing share of the global allocation
volume as private and institutional investors
explore new themes and geographies across

BILLION
venture capital strategies. these regions.

Over 50% of the investments are focused on

North America, however all regions across the
world have seen an increase in allocations in IN ASSETS
recent years.

80%
9%
2% AUM BY
6% ASSET STRATEGY
37%
6%
Private equity Listed equities
IN FARMLAND,
10% Farmland Commodities PRIVATE EQUITY
Venture capital Others AND VENTURE
Private debt
CAPITAL
30%
STRATEGIES

12% AUM BY OVER

50%
3%
GEOGRAPHIC FOCUS
4%
North America Africa
6% 53%
Europe CIS

7% South America Middle East FOCUSED ON

Oceania Others NORTH AMERICA
13%
Asia Pacific

EVOLUTION OF AUM BY FUNDS SPECIALIZED

IN FOOD AND AGRICULTURE STRATEGIES (% OF TOTAL AUM)

100%
COMMODITIES

92%
PRIVATE DEBT 80%
VENTURE
CAPITAL

LISTED EQUITIES
60%

PRIVATE EQUITY

40%

20%
FARMLAND
92% of AuM from the funds tracked by
Valoral Advisors are invested in 0%

alternative investment strategies, which '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

highlights the continued shift towards

Farmland Venture Capital Listed Equities Others
private strategies including real assets,
Private Equity Private debt Commodities
private equity and venture capital.

THE F&A By any measure, the growth experienced in the last two decades is formidable. But
despite this, we believe the sector is still in its early stages. We see a decade ahead

WORLD of further institutionalization of the food and agriculture asset class, with sustainability
at the forefront and in which technological innovation will play a key role to enable
IN 2030 more efficient and sustainable food production systems.

AVERAGE ANNUAL ALLOCATION TO SELECTED FOOD AND

AGRICULTURE INVESTMENT FUNDS
(AVERAGE $BILLION/YEAR IN THE CORRESPONDING PERIOD)

+43%

+80%

4.1 7.4 10.6

2006-2010 2011-2015 2016-2020 2020s

MAIN FOCUS AREAS IN THE

CORRESPONDING PERIOD

- Emergence of China in - Emerging markets - Focus on fresh products - Institutionalization of the

the global ag trade
- U.S./ Latam farmland
- Ag frontier expansion
- Cereals & oilseeds
- Biofuels
- Listed equities /
commodities
- U.S. farmland and healthy food asset class (depth, scale,
- Animal protein - Permanent crops/water track record)
- Commodity hedge funds - Aquaculture - Increased specialization
- Private equity strategies - Explosion in private equity - Sustainability mandate
- Private debt strategies strategies - Food and agriculture
- AgTech & FoodTech VC everywhere
- Regenerative ag &
biodiversity
- Carbon, water & plastic
footprint
- Return of the mega funds?
- (De)globalization ahead?

To learn more about Valoral Advisors is an internationally recognized advisory Firm

what we can do for you, specialized in the global food and agriculture investment space. We
please contact us! work with fund managers, private and institutional investors, and

business owners to help them invest profitably whilst fostering a better

W W W. VA L O R A L . C O M agriculture – more productive, more efficient, and more sustainable.