Objective:
The Latin America Agribusiness: Distressed Assets Fund will be established to purchase and manage eligible distressed assets. Upon
completion of a restructuring, the Fund will divest itself of the assets in the form of strategic sales as well as liquidations of portions of the original
assets. Profits derived from these sales will be returned to the Fund for subsequent equity investment and distributions to principals.Principals:
Institutions and individuals providing the requisite working capital for the work-outs and resale of the assets.Beneficiaries:
The principals and those institutions transferring assets at nominal or heavily discounted prices to the Fund. Fund Manager: The GIC Group. Sponsors: GIC affiliate
, Latin America Enterprise Fund Managers. Capitalization:
US$20- 60 million.IRR Forecast: 50%. Investment Period:
3 years ( + up to three one-year period renewals ). Industry: Agribusiness, feed, food processing, or biotech, as well as food-related infrastructure. Region:
Prime targets: Argentina and Brazil. Secondary targets: other Latin American countries. Why Argentina and Brazil?
- large economies in turmoil
- among the most efficient and advanced agricultural economies in Latin America
- combination of internal food/feed requirements and high export capacities
- many competitive companies in liquidity squeeze
- investor opportunities from heavily discounted asset values and mismanaged portfolios of institutional investors reflecting earlier investments at over-inflated multiples
Target Profile:
The Fund will seek 4 - 5 target firms with the following characteristics:
- privately-owned
- net asset values of approximately US$50 million
- in financial distress
- recognized products and/or even some brand equity
- high actual or potential export capabilities and track record
For more information on the Latin America Agribusiness: Distressed Assets Fund please refer to the following links:
Executive
Summary
Term
Sheet
Partners
and Associates
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Richard Gilmore
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