Regenerate Asset Management, a climate change-focused asset manager that was backed by global investment manager M&G last year, has completed its first investment of €40m in its Regenerate European Sustainable Agriculture (RESA) fund, to acquire two farms, which will then be combined to form Regen Blue, a scaled blueberry business based in Central and Southern Portugal.
The RESA fund was launched in May 2023 with a €150m investment from M&G’s £5bn Catalyst flexible private markets strategy, which invests in environmental and social solutions on behalf of its £129bn Prudential With-Profits Fund.
According to a press release, the RESA fund aims to offer clients exposure to an asset class which provides real asset diversification, long-term positive climate impact and protection against rising inflation.
The investment in Regen Blue is intended to expand the farms’ approach into regenerative methods; plant additional tree crops to improve the biodiversity and soil health of the land; enable all elements of the regeneration plan to be baselined, monitored, and reported in accordance with Regenerate’s methodologies on a single platform covering all sites; support its existing sustainable farming management team; and allow for the scaling of the business to contribute to the local community’s economic growth and boost local employment.
In a press statement, Ryan Cameron, CIO of Regenerate, said: “Regen Blue is a great example of how we bring together high calibre investment principles with our specialist regenerative agriculture expertise, allowing us to acquire farming businesses transforming both the scale and diversity of existing operations to reach new heights.
“The existing management team has already established a fantastic small scale sustainable blueberry farming business – our investment will build upon this high-quality foundation and turbo charge profitability. Regen Blue will expand operations and layer new approaches to production which will boost the quality and productivity of the soil, minimise costly external supplies such as fertiliser and ultimately create a circular farming business.”
Regenerate’s CEO, Ben Stafford, said: “[Regen Blue has] already started to integrate cover crops with excellent results and are now exploring further regenerative practices to help manage soil erosion or pests and will begin feeding the plants liquified compost which replicates the nutrient-rich forest floor. These techniques will improve profit margins and fortify the agricultural enterprise and its natural environment.”
Niranjan Sirdeshpande, Global Head of Investments at M&G Catalyst, added: “Regenerate’s mission aligns perfectly with our objectives to invest where we can make the biggest difference – and in this case the end goal is sustainably produced food. Our backing will enable them to add value through regenerative agriculture in a way that generates market rate private equity returns for investors, while also delivering positive science-based environmental impact on the planet.”
