The Global Agribusiness strategy seeks to complement TIAA’s Global Farmland strategy by investing in the global agriculture value chain. This includes farming inputs, protein production, and post-harvest processing and distribution, all of which are volume-based activities with substantial tangible asset bases. Representative investments include grain milling, milk and egg production, poultry rendering, and dairy equipment manufacturing.
The agriculture value chain is large, global, and growing. Traditionally, it has been underserved by institutional investors whose interests do not always align with family-owned companies. TIAA seeks to capitalize on strong fundamental food demand trends by investing minority equity and subordinated debt into a diversified group of privately-held companies in select developed markets. Through prudent underwriting, a moderate-to-low use of leverage, and a focus on growth with well-aligned partners, the Global Agribusiness strategy is intended to deliver attractive risk-adjusted returns with a current income component.
Agribusiness investments are subject to various risks, including market conditions, investment style, and availability of liquidity.
This material is provided for the informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.
The strategies discussed may only be appropriate for certain qualified investors.