Fund Structure

The pension had also acquired secondaries stakes in two separate farmland funds now managed by Nuveen at the end of 2021, which were worth a combined $456m.

Chief executive Paul Young says partnership with asset manager Diffractive Managers Group will bring fresh sources of capital for timber and ag strategies.

Competitive markets and new fund investments dictate that the pension expects it will take up to 24 months for its capital to be deployed through Ceres’ Midwest-focused open-ended farmland vehicle.

The pension is considering divestment from timber and ag as it looks to strengthen inflation hedging and performance through non-core real estate and infrastructure investments.

Recent strength in farmland markets has been driven in part by rising interest rates that are themselves likely to be a key factor shaping buying strategies in the years ahead.

Chair Tim Samway tells Agri Investor the fund manager was ‘unable to continue’ in its previous form, with all options on the table for how to proceed.

Oaktree Capital Partners is no longer involved with Argyle Capital Partners, ending the former’s involvement in the ag and water assets previously managed under the Blue Sky banner.

Bluesource Sustainable Forests Co. vice president Aaron Paul says the collaboration with credit-focused Oak Hill Advisors represents a ‘private equity bet on the carbon markets.’

Food Initiative director Noah Coen-Cline says the Growing Justice initiative reflects an effort to engage directly with communities impacted by its grants aimed at supporting sustainable food chains.

The Clean Energy Finance Corporation has committed A$30m to Wyuna’s first fund, alongside property firm the Goodman Group.