- Sectors
- Agri-science
Sector · Origination
Agri-science.
Agri-science covers the inputs a farm buys rather than the land it works. Seed treatments, soil biology, crop protection chemistry and precision application equipment all sit inside registration regimes that behave like pharmaceutical ones. IGUAKO Capital owns no farmland anywhere. It owns the businesses that sell to farmland, which carry the pricing power and none of the weather.
- Exposure
- US$97 million across 5 positions
- Positions
- 5
- Divisions
- 3
- Regions
- 3
Thesis
Farmers change what they plant. They rarely change what they spray, treat and inoculate with, because a registration and an agronomy record stand behind each decision. IGUAKO Capital funds the registrations and the field trials, then holds the supplier through the cycle. The return comes from renewal rates rather than from harvest prices.
Private EquityCommercial FinanceInvestment Banking
Latin AmericaAfrica & Indian OceanOceania
The 5 positions total US$97 million. Two are crop protection formulators with registrations in Brazil and South Africa. One is a soil biology laboratory selling inoculants under multi-season supply agreements. One builds precision application equipment for row crops. The fifth treats seed for growers across Oceania. Origination runs through the São Paulo and Johannesburg offices.
Seasonality is the discipline. Revenue arrives in two windows a year and working capital has to be sized for both of them. Every position is underwritten on a full crop cycle and never on a single season. Offtake agreements are required where one grower group exceeds a fifth of revenue. Weather risk is transferred to insurers, not absorbed.
Themes
- Crop protection formulation with country registrations
- Soil biology and inoculants under multi-season agreements
- Seed treatment for row and pasture systems
- Precision application equipment for broadacre growers
- Offtake cover where one grower group is concentrated
Case studies
1 in this sector.
Insights