Smart, Smaller Scale Plays Land Private Equity Fund Comfortably in the Catbird Seat
By Marc Dresner, IBC Life Sciences
Michael Curry, managing partner at Investeco Capital, has carved out a plum investment niche in Canada’s burgeoning “intelligent agriculture” market for his firm and its clients.
While big private equity funds tend to concentrate on big deals with big companies to the tune of tens of millions, Investeco frequently takes minority stakes ($2-3 million) in early-mid-stage, modest players ($7-10 million rev.) who turn a tidy profit on a promising product with substantial growth potential.
“We don’t have a lot of competition for deal flow,” Curry told Ag Chat. “There is so little capital looking into these areas in Canada that the door is open when we go to see these companies.”
“These entrepreneurs are doing very well; they’re not prepared to sell half the company at this stage,” Curry added. “We like people who think long-term and not in short cycles. These businesses have to have compelling reasons to be around for a long time.”
Investeco’s fund pours expansion capital into agricultural and environmentally sustainable interests in four main areas: water, energy, food and technology.
According to Curry, the sweet spot often rests at the intersection of agriculture and technology: GPS navigation for tractors, variable rate application for seeding and fertilizer, UV water filtration, etc.
“To grow in a sustainable, economical manner going forward, [agribusiness is] going to have to increase yields and crops. We are going to have to use less energy doing so. We are going to have to use less water,” said Curry. “So we see tremendous opportunity in the marriage of technology and agriculture production.”
In this edition of Ag Chat, we’ll also explore:
• The trend toward de-commoditized, value-add food production
• The resurgence of local, resilient supply chains
• Why Wal-Mart is now selling organic milk…
Listen to Part 1.
Listen to Part 2.
Download the transcript.
Editor’s note: Michael Curry will be featured on a distinguished panel titled “Making AG Investments Responsible for a Sustainable Future” at the AG 2.0 Global Investments Conference in Toronto, Canada November 7-8, 2011.
For more information or to register, please visit www.ibclifesciences.com/globalaginvesting
ABOUT AG CHAT
Ag Chat is an executive interview series featuring the business experts, investors and entrepreneurs at the forefront of sustainable agriculture. Each episode explores the trends, technologies and drivers shaping the world of sustainable agriculture today.
ABOUT THE AUTHOR/INTERVIEWER
Marc Dresner works closely with IBC Life Sciences as a communication lead. He is the former executive editor of Research Business Report, a confidential newsletter for the market research industry. He may be reached at mdresner@iirusa.com. Follow him @mdrezz.
I don't know people who invest in agriculture. Everybody knows that investing in real estate is much more profitable. Do you agree?
ReplyDeleteHow to fix AVG license error?
ReplyDeleteSo in case you're stressed the market is excessively high and we're expected for an accident. Or then again you need to sit tight for the inescapable drop before you put your cash in. Consider whether you're so acceptable at foreseeing the market you can show improvement over Brittany who realized when to contribute down to the precise day. What's more, regardless of whether you are that acceptable, Law Essay Writing Help UK understand that it's as yet a losing system to the early and regularly approach that Sarah executed so immaculately.
ReplyDeleteWebroot SecureAnywhere key code
ReplyDeleteWebroot Keycode
Webroot Activate
Webroot activation
webroot activation key
Canon Mg3520 Wireless Configuration Guide [quick and easy]
ReplyDeleteHow do you Download, Install and Activate McAfee Security?
ReplyDeleteManaging The Norton Early Adopter Program
Avg. Free Download the full version + Allow Key-Antivirus / Internet Security
In other words, it brings your garden alive and adds to the security quotient. They are better than normal spot in many ways. outdoor solar lights
ReplyDeleteEnsure that the program is reasonable for the necessities of the patient. For this read all the conceivable data about the rehab in their official site. All the significant perspectives about the treatment community will be referenced on the sites and thus read them cautiously.
ReplyDeleterecovery quotes
overcoming addiction quotes
There should be very big investment on plantation so that we will get some releif from the global warming
ReplyDeleteStudents these days are stressed much to deal with their assignment’s compositions and grade’s enhancement. So, they’re asking their senior that can you write my assignment cheap so that they can have their tasks done before time. If you’re doing the same, don’t worry! You now no need to ask this to anyone, as we’re here to provide you with quality services that increase your GPA and work best for you. If you still have any query, you can contact us through our web to get them answered quickly. Our representatives are quite responsive and always there to help you out. Reach us for quality and consistency of your write-up.
ReplyDelete