Organic food and agriculture
Triodos Investment Management sees the need and the opportunity to support businesses that play an important part in the transition towards a sustainable lifestyle and economy. European organic and sustainable consumer businesses are growing and reaching maturity stages in their development. However, apart from venture capital and angel investors the capital markets are mostly characterised by a short term-focus which does not fit the long-term focus of mission-driven companies. The Triodos Organic Growth Fund, established in January 2014 as a Sub-Fund of Triodos SICAV II, aims to fill this gap.
Triodos Organic Growth Fund
Triodos Organic Growth Fund is an evergreen fund that focuses on providing long-term and mission-aligned private equity to leading mature companies active in the fast growing organic food and sustainable consumer products sector.
Since its launch on 13 January 2014 at a fund size of EUR 25.3 million, Triodos Organic Growth Fund has increased by 15.8% to EUR 29.3 million.
In 2014, Triodos Organic Growth Fund realised two investments. The fund’s first investment was in the Danish market-leading organic food company Aarstiderne and the second investment was in Triaz, a German mail-order and on-line retailer of sustainable consumer products.
Case Study: Aarstiderne
Since February 2014, Triodos Organic Growth Fund has held 20% of the shares in Aarstiderne A/S (Danish for ’the Seasons’). Aarstiderne is an organic box scheme company with 120 employees. It delivers around 30,000 meal boxes per week in Denmark and Sweden via a subscription service 55,000 customers. For four years this frontrunner in the Danish organic food sector offers both traditional boxes containing organic fruit and vegetables and boxes containing measured ingredients, including meat and fish, for the preparation of specific meals, with recipes included.
Triodos Organic Growth Fund anticipates growing its portfolio by adding three to four new investments. The fund currently targets investments in the range of EUR 2-6 million each. The aim is to have approximately 65% of the total net asset value invested at year-end 2015.