Toesca Asset Management and Astarte Capital Partners have teamed up to launch a $350m (€334m) Latin America fund focused on investing in a diversified portfolio of permanent crops using regenerative and sustainable practices.
The investment firms have committed $45m of sponsor capital to the newly created Toesca Permanent Crops II (TPC II) fund created to focus on “Chile’s competitive advantages in permanent crops and targeting strategic expansion into Peru and other Latin American markets”.
Carlos Saieh, partner and CEO of Toesca Asset Management, said: “In more than 20 years of investing in Latin America, we’ve never been more excited about an opportunity than we are today with this new platform.
“The combination of the natural competitive advantages of Chile and Peru for fruit production, along with the opportunity to provide counter-cyclical produce to the Northern Hemisphere, all within a dollarised industry, makes this investment case hard to beat compared to other alternatives.
“We’ve been carefully observing how institutional capital is starting to flow into the asset class in the region, and it is a wave that can only grow, further confirming our optimism about the future of this strategy.”
Teresa Farmaki, co-founder of Astarte Capital Partners, said: “We believe that sustainable agriculture is at the heart of the natural capital agenda, and we are thrilled to announce our partnership with Toesca. Together, our combined expertise will create a unique platform focused on regenerative agriculture assets in Chile and the broader Latin America region, shaping a sustainable future for generations to come.
“Regenerative agriculture investments are an emerging sector with tremendous potential, acting as a crucial catalyst for sustainability and food security. Developing sustainable agricultural assets generates significant environmental and social benefits, perfectly aligning with our commitment to responsible business practices.”
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