ADM raises $450m for Cibus Fund

Oscar Geen
25 January 2019

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ADM Capital Europe has closed its agribusiness investment fund, ADM Cibus Fund on $322m with an additional $130m for co-investment opportunities.

The vehicle was launched at the end of 2016 and held a first close in May 2017 on $100m with a further $100m for co-investments.
It is the first time ADM has raised a fund specifically for this strategy, but has made numerous investments in the sector from its other funds.

The new vehicle expects to make 35% of its investments in Europe, 35% in Australasia and 30% in the rest of the world.

It is already 26% deployed across six investments: two mid-market buyouts and four growth capital investments.

The firm did not appoint a global placement agent but used fundraising advisers in certain geographies, including the Middle East, the west coast of the US and northern Europe.

In October 2018, the Cibus fund was the first to be given Guernsey Green Fund status by the Guernsey Financial Services Commission.

Investors
ADM Cibus Fund received backing from a broad range of international blue-chip institutions in several geographies, including North America, Europe and Asia, according to a statement.

Arch Capital Group and the European Investment Fund are among the LPs in the fund, according to Unquote Data.

Investments
Cibus Fund will make buyout and growth capital investments in sustainable food processing and production businesses across the European and Australasian mid-markets. It also has a mandate to make growth capital investments in parts of the food and agriculture segments that have potential for technological overhauls.

The average ticket size will be $20-50m for buyout transactions and $4-7m for growth investments.

The vehicle will look to capitalise on challenges brought about by global demographic shifts and changes to trade patterns. In particular, the GP cited opportunities related to developing economies, which are struggling to meet demand for high-value foods as a result of growing middle classes.

People
ADM Capital Europe – Robert Appleby (joint chief investment officer, co-founder); Jason Silm (head of agriculture); Alastair Cooper (head of early-stage); Jeremy Alun-Jones (COO).