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Dexion Capital and Brown & Co launch farmland venture

Tuesday, November 25, 2014
Opalesque Industry Update - Dexion Capital, the alternatives investment bank, and Brown & Co, the UK and international agricultural professionals, today announced the launch of a joint venture, Agricultural Asset Management, which aims to bring the investment case for agriculture to a wider investor audience, making the asset class more accessible.

Agri-AM will invest in farmland in the US, UK, and Central and Eastern Europe. Working directly with local farmers, the firm will source attractive farmland purchases, share business risk and income through a combination of land leases, crop share, and custom / contract farming. Capital investment will also be made, to improve under-invested farms, and increase farm output through the adoption of innovative technology and latest farming practices, particularly in regions such as Romania.

Agri-AM provides exposure to trends in rising farmland values and commodity prices, which result from long-term global increases in the demand for food, combined with a shortage of farmland supply and capital investment. Agri-AM will provide investors with a source of diversified, alternative and secure returns of between 8% and 10% (net of fees).

The venture combines Brown & Co’s local farming, land management and acquisition knowledge with Dexion Capital’s own investor network and experience in manager selection.

Ana Haurie, Group Managing Director of Dexion Capital and CEO of Agricultural Asset Management, said: “Investing in agriculture represents a significant long-term opportunity in terms of returns and diversification. As a real asset, farmland is also a hedge against inflation. Agri-AM has the team and expertise to help investors gain access to this strategy.”

Charles Whitaker, Managing Partner of Brown & Co and CIO of Agri-AM said: “Given the backdrop of a long-term demand-supply imbalance in production and with the challenge of extreme climate events, agriculture represents a long-term investment opportunity. The US, in particular, is a major global agricultural commodity producer and has one of the most efficient farming industries in the world; as such, it is well placed to benefit from the macro factors affecting agriculture.”

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