Strategic Partnership for Regenerative Agriculture
Toesca Asset Management, a prominent alternative investment firm based in Santiago, Chile, has partnered with Astarte Capital Partners, an investment firm headquartered in London, to create a significant platform aimed at advancing regenerative agriculture investments across Latin America.
Launching TPC II Fund
The inaugural fund from this collaboration, Toesca Permanent Crops II (“TPC II”), has a target investment of US $350 million. This fund is keenly focused on creating a varied portfolio of permanent crops, utilizing regenerative agricultural practices that highlight Chile's agricultural strengths, while also eyeing expansion into Peru and other markets in Latin America.
Both firms have already committed approximately $45 million in sponsor capital to kickstart the investment strategy. TPC II aims to achieve notable financial returns through the establishment of high-performance orchards, built upon carefully selected plant species, which uphold exemplary operational, environmental, and social standards. As consumer preferences shift towards healthier eating habits, as well as the increased need for food security, the demand for these crops is projected to surge, making this initiative timely and essential.
Expertise and Experience
Both Toesca and Astarte bring a wealth of experience to this partnership. They combine local agricultural expertise with a global investment perspective in natural capital. Together, they have managed over 82,000 hectares of assets throughout South America, continuously demonstrating their ability to generate robust financial returns while contributing positively to the environment and society.
Leadership Insights
Carlos Saieh, the Partner and CEO of Toesca Asset Management, expressed his enthusiasm about the venture, highlighting Chile's natural advantages for fruit production and the opportunity for counter-cyclical supply to Northern Hemisphere markets. He believes this investment case is particularly compelling given current trends in institutional capital flowing into the region.
Saieh remarked, “The economic viability of our projects is significantly appealing, not just in terms of returns but also regarding the positive impacts on local communities and the environment we aim to foster through our sustainable development practices.”
Shared Vision for Sustainability
Echoing these sentiments, Teresa Farmaki, co-founder of Astarte Capital Partners, reinforced the firm’s commitment to sustainable agriculture. She noted that the partnership is designed to create a pioneering platform that will facilitate investments in regenerative agriculture while addressing pressing sustainability and food security challenges.
Farmaki stated, “Our collaboration harnesses the extensive knowledge of real asset investments held by Toesca and our mutual focus on ESG principles. This positions us to leverage the unique prospects presented in the agricultural sector, particularly in Chile.”
About Toesca Asset Management
Founded in 2016 by a team of independent executives, Toesca Asset Management specializes in alternative investments across the Americas. The founders previously managed Celfin Capital before its acquisition by BTG Pactual Chile. Through their strategic investment approach, Toesca has successfully raised $2.3 billion from institutional investors, channeling these funds into various alternative assets, including real estate and regenerative agriculture.
About Astarte Capital Partners
Astarte Capital Partners, founded in 2015, focuses on sustainable real assets and aims to provide investors with access to thematic sectors to align with significant macroeconomic trends. With over 300 years of combined asset management experience, Astarte seeks to work collaboratively with established teams to facilitate growth and long-term success in the sectors they target.
Frequently Asked Questions
What is the focus of the new partnership between Toesca and Astarte?
The partnership focuses on creating an investment platform that targets regenerative agriculture projects in Chile and the broader Latin American region.
How much capital is being invested through the TPC II fund?
The TPC II fund aims to invest US $350 million in a diversified portfolio of permanent crops.
What are the expected benefits of the investment strategy?
The investment strategy is anticipated to achieve substantial financial returns while promoting operational, environmental, and social well-being.
Who are the key individuals involved in this partnership?
Carlos Saieh serves as CEO of Toesca Asset Management, and Teresa Farmaki is a co-founder of Astarte Capital Partners.
What previous experience do the firms bring to this new venture?
Both firms have extensive experience in managing agricultural assets, totaling over 82,000 hectares, and have a strong track record of financial success and sustainability initiatives.
