Highlights Strategies for Delivering the Best of Both Worlds Through Food and Agribusiness Investments
NEW YORK, Feb. 26, 2025 -- Paine Schwartz Partners ("Paine Schwartz"), a global leader in sustainable food chain investing, announced that it has published its inaugural white paper, Investing in Real Assets with a Private Equity Approach: How Food and Agribusiness Investments Can Deliver the Best of Both Worlds. The white paper can be viewed and downloaded on Paine Schwartz's website.
Kevin Schwartz, Chief Executive Officer of Paine Schwartz, said, "As investors seek to achieve private equity returns with more limited downside risk and more stable returns, we explore the possibility of bridging the gap between these dynamics in our inaugural white paper. Food and agribusiness, which we have been investing successfully in for over 20 years, is a distinct and broad sector that encompasses many real assets and private equity characteristics. With case studies from across the Paine Schwartz portfolio, we examine how this intersection presents a compelling opportunity to deliver the best of both worlds for investors."
Key takeaways from the white paper include:
- Paine Schwartz believes that achieving private equity returns with a real asset risk profile is feasible by selecting the right business models and through strategic approaches that combine the strengths of both asset classes.
- It is not necessary to own the actual real asset to benefit from its attractive characteristics – investing in adjacent companies where there is look-through exposure to real assets may offer higher returns with access to similar dynamics.
- Hybrid investment structures, operational improvements, moderate leverage, value-add strategies, and sector diversification are also key mechanisms to achieve this balance.
- While challenges remain, a well-executed strategy offers the potential for higher returns with a more manageable risk profile.
- In Paine Schwartz's experience, investments in companies with both direct and indirect exposure to food and agribusinesses have produced returns in the past comparable to traditional private equity investments by selecting the right business models, implementing operational efficiencies, exploring new markets, and leveraging technological advancements. Real world examples from Paine Schwartz's portfolio in the white paper include Costa Group, AgroFresh, and BLOOM FRESH.
About Paine Schwartz Partners
Paine Schwartz Partners is the largest private equity firm dedicated to sustainable food chain investing, with ~$6.5 billion of AUM and over 20 years of experience. The firm invests across specific segments of the food and agribusiness value chain, with a focus on two core investment themes: productivity and sustainability and health and wellness. Through its proactive, thesis-driven approach, the firm targets value-added and differentiated companies and makes primarily control buyout investments, with a smaller allocation to growth companies. For further information, please see www.paineschwartz.com.
Contacts:
Andy Brimmer / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
+1 212-355-4449
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