Guernsey's excellent reputation as an international finance centre was a key factor in London-based investment manager ADM Capital Europe LLP launching its Cibus Fund in the island.
The Cibus Fund, which invests in mid-market opportunities for sustainable food processing and production in Europe and Australasia-based companies that operate across the international high-value food supply chain, had its first close of $100 million on 1 May and has a target of a $500 million final close in 2018.
ADM Capital already has nine investments in the pipeline for Cibus. Four of these are at an advanced stage of completion with the remaining five presently going through due diligence.
Vistra Fund Services is administrator to the fund.
ADM Capital Europe Partner and Ciber Investments Director Jeremy Alun-Jones said Guernsey was a great location to establish the fund.
"Guernsey's excellent reputation as a jurisdiction suited our institutional investor base and the quality of servicing from Vistra Fund Services has been outstanding," said Mr Alun-Jones. "ADM Capital required an administrator with a strong private equity capability and a global presence to offer servicing in the various countries in with the Cibus Fund invests – Vistra in Guernsey was the perfect fit for us."
The Cibus Fund builds on ADM Capital's proven track record of investing in the agribusiness sector. It is looking to generate more food from fewer inputs and reduce the negative impacts of agriculture on the environment. ADM's thesis-driven approach shows that demand for high-value food in many of the world's fastest-growing regions exceeds regional production and processing capacity.
According to the UN World Population Prospect, by 2030, the population of many developing economies in Asia, as well as the Middle East and North Africa, will have grown by up to 50% but a shortage of water and suitable land will limit the capacity of many of these regional economies to produce and process high-value foods and thereby satisfy demand. In addition to this population growth, the middle classes – particularly of China and India – are set to expand rapidly, expecting to result in a shift in aspirations to seek more of their calorific needs from high-value foods.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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