1. "Doing good while doing well"
Agri-Vie Investment Advisors is a financial services provider authorized by the Financial
Services Board, Reg nr 33826.
Agri-Vie is an impact investment initiative by SP-aktif and Sanlam Private Equity.
Agri-Vie is a private equity investment fund focused on food and agribusiness in Sub-Sahara
Africa with a mission to generate an above average investment return, as well as demonstrable
socio-economic development impacts through its equity investments in food and agribusinesses.
As such, Agri-Vie is styled as an ‘impact investment fund’, harnessing investment disciplines to
address development challenges.
The fund was initiated by SP-aktif and Sanlam Private Equity with the cooperation of South
African and international investors as well as the Makotulo Consortium. The fund’s vision is to be
a catalyst for sustainable growth in Africa through investing in one of the foundational sectors of
the continent.
Agri-Vie seeks to realise this vision through deploying development capital and management
know-how according to sound investment and business principles.
INVESTMENT APPROACH
INVESTMENT FOCUS
We are a mid-market investor in businesses involved in inputs to, processing, marketing and
distribution of food and beverage, fibre, timber and aquaculture products.
As an investor focused on the food and agribusiness value chain, Agri-Vie only in exceptional
cases invests directly in stand-alone primary production/farming. The following sub-sectors relate
to our investment focus:
· Food and beverage FMCG
· Convenience foods, including fresh packed and prepared foods
· Protein products including from poultry, aquaculture and beef
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2. · Value added dairy products, including yoghurts, desserts, cultured milk
· Health & wellness products/ nutraceuticals
· Forestry and timber products
· Agricultural inputs including seeds, bio-friendly fertilizers and crop-protection
· Food logistics – cold chain, warehousing, distribution
· Renewable energy
· In the context of integrated rural development, Agri-Vie’s mandate includes investments
in ecotourism.
INVESTMENT FOCUS – Transaction parameters
Agri-Vie invests equity and quasi-equity in transactions broadly meeting the following
parameters:
· Nature of transactions: Business expansion and consolidation (‘buy-and-build’), corporate
unbundling, privatization, MBO’s in combination with one of the above transaction types;
· Preferred equity position: 25% - 75%;
· Prudential limit: Agri-Vie normally does not provide more than 75% of the business’s
expansion capital required;
· Average transaction amount ZAR 40m/ USD 6m
· Debt funding can be arranged by Agri-Vie.
Agri-Vie is open to syndication and co-investment.
INVESTMENT FOCUS – Investment Criteria
Business-related criteria
We pay particular attention to the extent to which potential investee companies meet the
following investment criteria:
· The track record of the business: profitability, cash flow, balance sheet;
· Sufficiency of forward cash flows;
· Attractive growth prospects;
· Competent management who shares in the investment risk;
· A sustainable competitive advantage;
· Export performance/ potential;
· Extent of vertical integration;
· Quality of corporate governance;
· Attractive entry values and good exit potential.
Development related criteria
Agri-Vie’s mandate requires that its transactions also meet the following criteria:
· A demonstrably positive impact in general on rural socio-economic development: wealth
creation, rural employment, entrepreneurship, diversification of the economic base;
· Participation by local entrepreneurs and shareholders in ownership & management;
· Utilisation of local resources;
· Socially and environmentally sustainable;
· Sound corporate governance.
With regards to South African investments, the prevailing codes on black economic
empowerment (BEE) apply to each transaction.
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3. INVESTMENT FOCUS – Investment Process
Initial contact leads to a two page information requirement;
Should an in principle decision be taken to engage, the Agri-Vie management team will
undertake a substantive evaluation process, including a review of:
1. industry and sector status, prospects;
2. business robustness and growth prospects;
3. quality of the management team;
4. capital structure and pricing;
5. sustainability of development impacts of the investment;
6. terms for a shareholders agreement.
Agri-Vie’s investment committee meets on an ‘as needed’ basis to decide on investment
proposals from the investment management team.
A mutually acceptable term sheet is followed by in-depth business, financial and legal due
diligence.
The above steps typically involve a period of 12-16 weeks.
INVESTMENT PERIOD
Agri-Vie invests with a view to realise its investment in 7-10 years by way of one of the following
mechanisms:
· Strategic (trade) or financial sales;
· Sales back to management or other shareholders;
· Listing on a main or alternative stock exchange;
· Appropriate dividend policies.
AGRI-VIE’S PARTNERSHIP COMMITMENT
As a long term equity partner, Agri-Vie commits to the following in addition to the long term
capital it provides:
 Board participation by experienced directors;
 Business development support in the form of:
 business competitive strategy inputs;
 strategic marketing inputs;
 financial, structuring and general business planning advice;
 access to extensive business networks;
 general business guidance;
 active, hands-on management support when needed.
 Staying the course with its investee companies through the inevitable ups and downs of
business cycles.
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4. BLACK ECONOMIC EMPOWERMENT
In the broader Sub-Saharan context, Agri-Vie supports BEE through its focus on the involvement
of local entrepreneurs and shareholders in the ownership and management of its investee
companies.
In the context of South Africa, Agri-Vie is committed to the BEE principles and practices as
embodied in the prevailing Codes on Broad Based Black Economic Empowerment. Agri-Vie’s
own governance and management structures furthermore reflect active participation by
previously disadvantaged individuals.
Against the above background, Agri-Vie’s South African transactions reflect:
· Equity participation by historically disadvantaged persons;
· Participation by historically disadvantaged persons in the management and control of
investee companies;
· Market access and other benefits to emerging farmers;
· A focus on improved participation opportunities for women in food and agribusiness;
· Work force skills development and training;
· Application of appropriate procurement practices;
· Participation in social corporate investment.
INVESTMENT TEAM
Herman Marais ( B Comm LLB ) [hermanm@agrivie.com]
· Managing Director
· Former Deloitte partner;
· Director of SP-aktif Investments, alternative investment boutique
· Director of companies
· Twenty years of business building and investment experience;
Izak Strauss (B Acc (Hons) CA (SA)) [izaks@agrivie.com]
· Executive Director & Chief Investment Officer
· Director of SP-aktif Investments, alternative investment boutique
· Director of companies
· Former Partner, PWC
· Former agribusiness entrepreneur
· Twenty five years of investment and transaction services experience
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5. Prof ASM Karaan MScAgric, PhD(Agric)(Stell)
[mohammadk@agrivie.com]
· Dean of Faculty of Agriculture, Stellenbosch University
· Former Chair: National Agricultural Marketing Council
· BEE transaction advisor
· Director of companies
David Douglas (B.Econ; ACMA; PMD (Harvard))
[davidd@agrivie.com]
· Investment Advisor
· More than thirty years of corporate and investment experience in
agribusiness
· Substantial transaction experience in Sub-Sahara Africa;
· Director of companies
Avril Stassen (B Acc (Hons), B Comm (Hons), ACMA, CA(SA), CFA)
[avrils@agrivie.com]
· Investment Advisor
· More than twenty years of investment experience in private equity and
money management;
· Director of companies;
· Manufacturing entrepreneur.
Lynette Thomas (B.Comm (Hons) ACMA)
[lynettet@agrivie.com]
· Managing accountant
· Experienced management accountant
· Extensive experience in due diligence and investigative accounting
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6. Rudi van Niekerk (BComm, MBA, CFA)
[rudivn@agrivie.com]
· Investment Advisor
· 6 years agribusiness experience
· Multi-sectoral transaction experience in food and agribusiness
Ellora Ghosh (BA(FA), MBA) [ellorag@agrivie.com]
· Investment Advisor
· Former Senior Analyst, Deloitte Headquarters, NYC
· Former Analyst, Small Business Development Centre, NYC
· Entrepreneurial business founding partner
INVESTORS
The Agri-Vie fund has been structured with a view to investor flexibility as regards commitment
amounts, limited liability, geographic exposure and fund governance.
The Agri-Vie Fund's final close has taken place on 30 September 2010. Investors interested to
discuss participation in similar funds should click here for further information.
PARTNERS
The management of the Agri-Vie investment process and portfolio benefits from the contributions
of key partners:
SP-aktif has a ten year track record in investment and management services. It follows an active
investment management approach in originating and managing its portfolio of proprietary and
managed investments. Having develop a specialist profile in the agribusiness sector, the firm
spear-headed the development of the Agri-Vie Fund in conjunction with Sanlam Private Equity.
Through its specialist fund management structure, SP Fund Managers, the firm leads the active
management of Agri-Vie.
Part of the Sanlam Investment Group, Sanlam Private Equity is one of the largest private equity
firms in Southern Africa with around R5.3 billion in assets under management (July 2008)
Offering direct and fund of funds investment capability, Sanlam Private Equity has developed
strong networks and relationships with leading private equity players including BEE financiers
and private equity advisory board members. Sanlam Private Equity strengthens the application
of best practices and sound corporate governance in Agri-Vie’s fund management.
The Makotulo BEE Consortium is led by the women owned Makotulo Agricultural Investment
Company. Led by prominent agribusiness women such as Ntombi Msimang, Kate Moloto and
Jean Davidson, Makotulo has teamed up with agricultural economist and Stellenbosch
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7. University’s Dean of Agriculture, Dr Mohammad Karaan. The Consortium is guiding the
identification and structuring of Agri-Vie’s BEE transactions while placing special emphasis on
the empowerment of women in agribusiness.
INVESTMENTS
GENERIC DESCRIPTION OF INVESTMENTS MADE TO DATE:
Dew Crisp
Dew Crisp is the market leader in convenience salads in South Africa. DC resulted from a merger
between Dew Crisp and Greenleaf in 1987: Dew Crisp was founded by Michael Kaplan in 1981.
Greenleaf was founded by Bruce Glazer in 1985.
It is a vertically integrated business with operations in farming, processing and logistics. DC
founders are thought leaders in hydroponics vegetable and herb farming in South Africa.
Dew Crisp is setting the standard in staff development and empowerment in the leaf salad
industry of South Africa.
africaJUICE
africaJUICE is a vertically integrated grower and processor of tropical fruit juice, mainly for export
markets in Western Europe and the Middle East. The company’s operations are located in the
upper Awash region of Ethiopia, benefiting from locational advantages relative to its target
markets and in terms of production conditions for, especially, yellow passion fruit. It brought
noteworthy innovations in cultivation practices and processing technology to its area. The
company also produces other horticultural products for the domestic market and supplements its
own growing operations in partnership with an expanding outgrowers –programme. The
outgrowers-programme presents micro-enterprises with new off-take opportunities and exposes
them to quality improvement programmes.
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8. Fairfield Dairy
Fairfield is a high quality, medium sized dairy, located in the Kwa-Zulu Natal midlands of South
Africa near Howick. The company is located in the centre of South Africa’s prime dairy farming
belt and was founded by Mr Kevin Laing in 1990. The company is known for its high quality,
value added products and is a regular national prize winner in the joghurt category. Fairfield
enjoys the support of prime national retailers, driving its rapid growth trajectory. As a smaller but
growing player, Fairfield contributes to the competitiveness of the dairy industry which is
dominated by a limited number of very large suppliers. The company is also well positioned to
contribute to the transformation and empowerment of the South African dairy industry.
New Forest Company (NFC)
NFC was founded in 2004 by Julian Ozanne, an entrepreneur from the United Kingdom who
joined hands with local and institutional shareholders in NFC’s countries of operation to build one
of only two plantation forestry and timber companies of scale in East Africa. East African
countries offer comparative advantages to plantation forestry and major import replacement
opportunities exist in the timber markets. Starting in Uganda, NFC now also has operations in
Mozambique, Rwanda and Tanzania.
NFC won Forestry Stewardship Council (FSC) accredidation (the global gold standard in
sustainable forestry management) for its Uganda operations in June 2009. This is evidence of a
wide range of social and environmental initiatives that the Group is undertaking to optimize the
development impact of its business in the communities where it operates.
Asilia Africa
Asilia is an up-market ecotourism operator, founded in 2004 by local entrepreneurs in
partnership with shareholders from Europe. It built a core suite of operations in Tanzania
including a beach lodge on Zanzibar Island as well as permanent and semi-permanent lodges in
the Serengeti and other conservancies of Tanzania. Asilia’s conservation based business is a
leading player in building out the governance and development of wilderness and wildlife
conservancies in East Africa. Being a substantial rural business, Asilia sustains livelihoods for
hundreds of households in areas where many other sustainable employment options do not
exist. Agri-Vie is partnering the company on its regional expansion path.
NEWS
GENERAL
African Development Bank promotes Agribusiness investment Funds / Equity participation of
USD 15 million in Agribusiness Investment Fund (Agri-Vie Fund MPCC
Appablog Wordpress (online), 28/01/2009
Sanlam goes for Agri-business
Cape Business News (online), 30/10/2008
Sanlam and international partners invest in agribusiness
English Release
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9. FAIRFIELD DAIRY
Fairfield attracts investment
Witness Weekend, 16/01/2010
Agri-Vie kry belang in Fairfield Dairy
Sake 24 Online (Burger Kaap, Beeld, Burger Oos Kaap) 14/12/2009
Private equity fund buys stake in KwaZulu-Natal diary
Business Report (Online), 14/12/09
Agri-vie invests in award-winning local dairy producer
English Release(November, December 2009), Trade Invest (online)
NEW FOREST COMPANY & AFRICAJUICE
Africa is an investment hotspot
Farming SA, 01/02/2010
Food Production Beyond Exploitation
Financial Mail, Biz-Community - 22/01/2010
Afrika hét agri-potensiaal, wys fonds
Sake24 (online), Burger Kaap, Oos Kaap, Beeld, Volksblad - 18/01/2010
East Africa identified by agri fund as investment hotspot - (Trade invest)
TradeInvestAfrica , 15/01/2010
Agri-Vie eyes $300 million for Africa farm projects - (Reuters)
Reuters (Africa) Online, Farm Land Grab (online) 14/01/2010
Agri-Vie eyes $300 million for Africa farm projects
Business Report (online) - 14/01/2010
Agri-Vie puts money into east Africa
Business Day 13/01/2010
East Africa bears fruit
IAfrica (online), 12/01/2010
East Africa identified by agri fund as investment hotspot
africaJUICE Media Release
East africa identified by agri fund as investment hotspot New Forests Company
New Forest Media Release
East africa identified by agri fund as investment hotspot New Forests Company and africaJUICE
New Forest & africaJUICE Media Release
DEW CRISP
Agri-Vie Buys Slice of Pioneer Salad Maker
All Africa (online), Business Day & online 03/02/2010
Private equity fund invests in healthy eating habits
Cape Business News - 03/02/2010
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10. Agri-Vie buys stake in Dew Crisp
Bizcommunity, 02/02/2010
ASILIA
AGRI-VIE KOOP BELANG IN ASILIA
Beeld, Burger Oos Kaap, Kaap - 08/06/2010
Agri-Vie invests in eco-tourism
Business Day - 07/06/2010
Buying into tourism benefits the region
Sunday World, 06/06/2010
AGRI FUND LINKS ECO-TOURISM TO AGRIBUSINESS
Asilia Media Release, 01/06/2010
Dalk nog ‘n Agri-Vie fonds
Landbou (online), 18/01/2010
PERSPECTIVES
The End of Plenty - The Global Food Crisis.
Food and Agri Business - A Universe of Investment Opportunities
Growing Money On Trees
AQUACULTURE, THE 21ST CENTURY PROTEIN LEADER?
THE FUNCTIONAL FOODS AND NUTRACEUTICALS SECTOR
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