Strongholds in the industry are those companies who seek to meet the global challenges of increasing agricultural efficiency, sustainability, and distribution infrastructure, as well as support and evaluate the multitude of cost-saving innovations flowing from the blossoming agtech sector. Thriving in building this sustainable agricultural system and raising the profile of private equity participation in the underpenetrated food and ag sector is Paine Schwartz Partners. Based in San Mateo, California, this private equity firm is leading the way in sustainable food chain investing with over $2.3 billion equity capital deployed across more than 57 investments in the sector.*
Twenty-nineteen was a busy year for Paine Schwartz, marked by the final closing of its Paine Schwartz Food Chain Fund V, L.P. (Fund V) in September, which targeted an impressive $1.2 billion and exceeded that goal at $1.425 billion, due to oversubscribed demand and strong interest from its investors. In addition to sustained strong support from North American limited partners, Fund V generated increased demand from the international community, including the Middle East, Western Europe, and Asia, including Japan.
“This was truly a global capital raising effort, with participation from new and existing limited partners around the world,” said Kevin Schwartz, CEO of Paine Schwartz. “We have seen an increasing number of institutional investors focused on the food and agribusiness opportunity set, along with the need for sustainability, which is synergistic with driving positive investment outcomes in this sector.”
*Invested capital figures include co-investment. Includes platform and add-on activities by Paine Schwartz Partners as of October 2019, as well as by Fox Paine & Company (the “Predecessor Firm”) as of December 2007