Market Research

Commodities Investments To Increase Says Private Equity Group

Rachel Walsh Reporter 19 November 2008

Commodities Investments To Increase Says Private Equity Group

Wealth managers are increasingly interested in investments with strong commodity ties, according to Canada-based private equity firm Agcapita.

As there are few listed companies engaged solely in farmland investing, investors are looking to private equity structures, the firm said in a statement.  

Agriculture-themed private equity funds are still rare but a number of traditional long-only investment firms, such as Swiss bank Sarasin, have launched soft commodity and agriculture-themed funds recently, to take advantage of what is seen as long-term demand for agricultural products. This is largely a result of improved living standards in emerging market economies and demand for biofuels.

Agcapita's advisory board includes former UK Chancellor of the Exchequer and Jim Rogers, co-founder, with George Soros, of Quantum Fund, which famously "broke" the Bank of England in 1992. It is based in key locations across the provinces of Manitoba, Saskatchewan and Alberta.

Agcapita is the third in a family of private equity funds which has grown to almost $100 million in assets under management in two years.

 

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