ADM Capital’s Cibus Fund backs Enterra Feed Corp

Enterra Feed Corp, a maker of insect-based feed ingredients for the aquaculture, pet food and poultry feed industries, has secured an undisclosed amount of funding. ADM Capital Europe’s Cibus Fund was the lead investor.

PRESS RELEASE

London, August 23, 2018 – ADM Capital Europe LLP is pleased to announce that its Cibus Fund (“Cibus”) has led a successful financing round for Enterra Feed Corporation, a leading developer and manufacturer of sustainable insect-based feed ingredients for the aquaculture, pet food and poultry feed industries.

The financing led by ADM Capital complements the Cibus Fund’s primary focus on mid-market investment opportunities in sustainable food processing and production companies and will form part of its early stage investment mandate.

The investment, which included funds from co-investors PHW Group and a private Canadian company, will see Cibus take a large minority stake and a board seat as part of the transaction.

Since 2007, Enterra has pioneered sustainable production of nutrition-rich insects for animal feed in North America. Using pre-consumer food waste as feedstock, the company farms and harvests black soldier fly larvae, a beneficial insect that reproduces swiftly under controlled conditions which are processed into high value animal feed ingredients. The larvae production process is completely sustainable, diverting food waste that would normally go to landfills, compost operations, or be incinerated.

Sales of Enterra products have tripled annually and continue to show high growth in pet food, poultry and aquaculture, as feed producers look for novel ingredients and sustainable replacements for resource-intensive inputs like fishmeal, soybean meal, coconut oil and palm kernel oil.

With this new investment, Enterra Feed Corporation will be able to build on its recent period of high growth and is on track to complete construction of new facilities in Alberta (2019), British Columbia (2020) and the Midwestern U.S. (2021). The three plants will increase the company’s production capacity substantially.

The deal is the fifth made by ADM Capital’s Cibus Fund, which is targeting a final close before the end of this year.

Commenting Alastair Cooper, Head of Early Stage Investments at ADM Capital said: “We are very pleased to have successfully led this investment round in Enterra Feed Corporation – a company which has impressed us greatly as it makes vast strides in sustainable food production. Converting waste food streams to high quality animal feed protein makes enormous sense for all. We see immense growth ahead for Enterra. The capital will allow the business to scale up its operations with the investment completely aligned with our Cibus Fund, which is designed to invest in rapidly-growing food chain companies that employ smart, sustainable technologies to create high value. It is an ideal partnership, one we are excited to pursue and nurture. Like Cibus, Enterra is about the future of food.”

Geoff Gyles, CEO of Enterra Feed Corporation said: “We’re very pleased that three prestigious groups have chosen to strategically partner with us, led by ADM Capital’s Cibus Fund, a global equity portfolio specializing in the future of food. Also joining us are the German-based PHW Group, a global player in high-quality poultry products, and a prominent Canadian family-owned investment group. We are fortunate in that their participation will go beyond investment; all three partners will provide hands-on assistance in developing our global expansion plans.”

About ADM Capital
ADM Capital is a Hong Kong and London-based private credit and private equity fund manager. Founded in 1998, ADM Capital manages USD$1.65bn across a range of funds. With over 38 people operating out of 4 international offices ADM Capital manages closed-end, open-ended and managed accounts. With its long track record, and particular expertise in Asia, ADM Capital focuses on off-market private transactions accessed via its extensive, proprietary network. ADM Capital recently launched its Cibus Fund, focused on investing growth capital into next generation global food and agriculture opportunities.

About the Cibus Fund
The Cibus Fund focuses on mid-market investment opportunities in sustainable food processing and production companies, primarily across Europe and Australasia, and is targeting a US$500m final close in 2018. The Fund aims to take advantage of the significant investment opportunities presented by global demographic changes, shifting trade patterns and the inability of the world’s fastest growing economies to meet rapidly increasing regional demand for high-value foods driven by burgeoning middle classes. Cibus will target companies with strong management teams that are active in one or more stages of high-value food chains and will look for companies that are established category champions with a demonstrable technological advantage. Investments are also evaluated on their environmental sustainability as a key determinant of value creation.

About Enterra Feed Corporation
Enterra Feed Corporation is a privately held company that specializes in the development and manufacture of sustainable insect-based feed ingredients for the aquaculture, pet food and poultry feed industries. Since opening its first commercial facility in 2014, Enterra has converted tens of thousands of metric tonnes of pre-consumer food waste into sustainable feed ingredients for its growing customer base.