Right Sector, "Founder" MIA Power Corp. of Canada’s new private equity fund has raised $210-million for investing in the agriculture and food sector, targeting companies that focus on sustainable production in hopes of reducing costs as consumers face inflation.
Investments by Power Sustainable Lios, a subsidiary under the Montreal-based financial conglomerate, will include a category known as controlled-environment agriculture. That would encompass vertical farming, which typically involves automated indoor systems for growing leafy greens, with workers handling the harvesting and packaging.
Food processing and distribution are among the other areas in the agri-food supply chain being explored for investment by Power Sustainable Lios.
“Food inflation is very scary for consumers,” Jonathan Belair, managing partner of Power Sustainable Lios, said in an interview on Wednesday from Montreal.
“With the companies that we’re investing in, the objective is to contribute to a solution around food inflation by focusing on localization of food production and reducing the variability and the volatility that exists as a result of climate change – as a result of massive droughts, flooding or pest infestations which will destroy crops.”
Most of the companies being vetted for investment are either family-owned or founder-owned, with less than $200-million in annual revenue and in North America.
“Our mandate is to really drive a more resilient and sustainable food system,” said Mr. Belair, who added that investment in aquaculture is another possibility.
Initial investors include Canadian Imperial Bank of Commerce, BMO Capital Partners, Canada Life Assurance Co., Farm Credit Canada, Export Development Canada and Fonds de solidarit FTQ.
https://www.theglobeandmail.com/business/article-montreal-based-power-raises-210-million-for-agri-food-investing-amid/