Canadian alternative assets manager Sprott Inc (TSX: SII) has partnered with Ceres Partners, a U.S. farmland private equity firm, in the launch of a new institutional farmland fund. The Ceres-Sprott Institutional Farmland Fund will focus on acquiring and leasing farmland assets in the United States. Other details of the fund, such as its expected size, were not disclosed. Ceres manages Ceres Farms, a fund that owns nearly 100,000 acres of U.S. farmland with total assets of about US$620 million. In July, Canadian farmland private equity firm AreaOne Farms closed its third fund at $130 million.
Sprott and Ceres Partners To Launch Institutional Farmland Fund
TORONTO, ON–(Marketwired – October 05, 2017) – Sprott Inc. (TSX: SII) (“Sprott” or the “Company”) and Ceres Partners LLC (“Ceres Partners”), are pleased to announce that they have entered into an agreement to launch the Ceres – Sprott Institutional Farmland Fund (the “Fund”) to provide institutional investors the opportunity to participate in the North American farmland investment market along with an established manager, Ceres Partners.
Ceres Partners is a specialist agricultural asset manager based in Indiana and the manager of Ceres Farms LLC (“Ceres Farms”), a farmland fund focused on row crop farmland in the Midwestern Region of the United States. Ceres Farms currently owns nearly 100,000 acres of productive farmland across ten states with total assets under management of approximately US$620 million.
“The addition of a farmland strategy supports our objective of providing investors with access to strategies with low correlation to the broader markets,” said Whitney George, Executive VP of Sprott and Chairman of Sprott USA. “As a longstanding investor in Ceres Farms, I have a great deal of respect for Perry Vieth and his team.”
“Farmland is an alternative asset class that we have been investing in since 2007 and we look forward to expanding the relationship between Ceres Partners and Sprott,” said Perry Vieth, CEO of Ceres Partners.
The Fund’s objective will be to acquire and actively lease farmland in the United States. In addition to renting the farmland to experienced local farmers, the Fund will seek to obtain income from both tillable and non-tillable areas wherever possible in a way that is reasonable given the unique characteristics of each farm parcel.
Sprott is an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the US and Asia, the Corporation is dedicated to providing investors with best-in-class investment strategies that include Exchange Listed Products, Alternative Asset Management and Private Resource Investments. The Corporation also operates Merchant Banking and Brokerage businesses in both Canada and the US. Sprott is based in Toronto with offices in New York, Carlsbad and Vancouver and its common shares are listed on the Toronto Stock Exchange under the symbol (TSX: SII). For more information, please visit www.sprott.com.
Ceres Partners is a specialist investment manager focused exclusively on food and agriculture. Ceres Farms LLC is a co-mingled investment fund launched in 2007 that acquires U.S. farmland which it then leases to independent family farming operations. Ceres Farms currently owns nearly 100,000 acres across ten states. At September 30, 2017, Ceres Farms had total assets of US$620 million. Ceres Farms’ investment objectives are to provide income, and capital appreciation, with low volatility and low correlation to other asset classes.
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Photo courtesy of Reuters/Mike Sturk