The formal appointment of The Trust Fund Group as Fund Manager in July 2014 launched the African Agriculture Fund (AAF) into the market.
A coordinated response from a pool of European and African development finance institutions, this private equity fund is powerful and
sizeable enough to make a positive impact on African agriculture and food production, through a truly pan-African investment approach
in response to the continent’s food security.
The Fund reached final close at US$ 151 million in November 2014, operations commenced in January 2015 and within six months the team,
set the investment pace by concluding the AAF’s first investment in variest region of the world.
The Trust Fund Group fundraising team, led by Joint Managing Partner, Stuart Bradley, pulled out all the stops to conclude final close
in mid 2016 at US$ 246 million, backed by an impressive pool of multinational limited partners. The AAF targets three subsectors of
food and agriculture: primary, secondary and tertiary (services and infrastructure):
Primary agriculture encompasses arable land development, cereals and staples, dairy and livestock farming, aquaculture,
fruit and vegetables, ranching, plantations and edible oils; especially produce for local consumption.
Secondary agriculture includes maize and wheat milling, soya processing, sugar milling and refining, production of animal feeds,
beverages and branded foods as well as packaging.
Tertiary agriculture extends to services and infrastructure including logistics, storage, seeds, subcontracting,
physical inputs, crop protection, input financing and fertiliser.
The Trust Fund Group will invest in transactions such as; management buy-outs and buy-ins, acquisitions, expansions, early-stage equity (minority/majority),
Leveraging off the Thebe community of companies to add value to all our investment companies and partners;
Building communities around our mining areas.
We seek to invest in companies that satisfy the following criteria:
a minimum investment requirement of US$ 5 million and maximum US$ 24 million from AAF;
an experienced management team with a compelling vision for the business and a willingness to collaborate with a financial investor;
a proven financial and operational track records and potential for future growth;
a commitment to transparency and proven sustainable industry-competitive advantages;
realistic valuation; and
an ability to achieve a profitable liquidity event in the medium term.
Potential transactions are also assessed on the level of appropriate local partners and smallholder participation brought
on board to stimulate local economical development.