The fund is set to invest US $350 million in a diversified portfolio of permanent crops based on regenerative and sustainable practices. It will focus on Chile’s competitive advantages in permanent crops and target strategic expansion into Peru and other Latin American markets.
Toesca and Astarte have already committed around $45 million as sponsor capital to start investing in the strategy.
The portfolio aims to deliver strong financial returns through high-performance orchards featuring carefully selected species, all operated under the highest operational, environmental and social standards.
Starting in early 2025, the initial investments will focus on permanent crops. Toesca and Astarte say these are experiencing a significant rise in global demand due to shifting consumer preferences towards healthier eating habits and their vital contribution to food security.
Together, the two firms say they bring extensive experience in managing over 82,000 hectares of natural capital assets across South America, backed by a track record of strong financial returns, carbon sequestration, and positive environmental and social impact.
Investment case ‘hard to beat’
Carlos Saieh, partner and CEO of Toesca Asset Management, says: “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 dollarized industry, makes this investment case hard to beat compared to other alternatives, he claims.
“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.
“The opportunity lies not only in the extremely attractive economics of each project we are investing in, but also in the positive impact we can have on both the environment and the local communities that will benefit from our responsible and sustainable development practices.”
Toesca has raised $2.3 billion of institutional capital, which has been strategically invested across illiquid alternatives including real estate, infrastructure.
Teresa Farmaki, co-founder of Astarte Capital Partners, says 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.”
