responsAbility Investments is an asset manager with $3.5 billion assets under management from private, institutional and public investors. The company supplies debt and equity financing predominantly to non-listed firms in emerging and developing economies in the energy, agriculture and finance sectors.
responsAbility is getting ready to launch its second sustainable food and agriculture private equity fund (responsAbility Food & Agriculture II), focused on providing growth capital to companies across the agricultural value chain in Asia to improve rural livelihoods, promote sustainable agriculture and strengthen value chains.
The fund will invest primarily in mid- and downstream companies, including supply chain and infrastructure-, food and beverage products- and food distribution companies. Through its downstream position, it aims to influence upstream food producers, traders, and aggregators to implement sustainable sourcing and (production) practices.
The fund is planning to take minority stakes in 6-8 companies, with a projected ticket size of $10-35 million (average $20-25 million). In addition to normal due diligence, the investee companies will be screened for ESG alignment. Through this screening the fund plans to create impact through:
Increasing productivity and income for smallholder farmers
Fostering sustainability in agriculture upstream production
Boosting sustainability in processing/production of food
Enlarging the supply of sustainable food and agricultural products
The strategy builds on the experience of the responsAbility Agriculture I ($67.4 million). Portfolio companies include: Samunnati, an Indian financial service provider offering credit and market linkages to smallholder farmers and SMEs across the agricultural value chain; and Wingreens Farms, an Indian high-quality ingredient farm to table company.70,71
70 ‘ResponsAbility Food & Agriculture II’. 2020. Zurich: responsAbility Investments AG.
71 ‘Growth in Asia: The Future of Food - ResponsAbility Food & Agriculture II, SLP Investment Opportunity for Discussion Purposes Only’. 2020. Zurich: responsAbility Investments AG.