Atitlan and Santander have signed an agreement to create Atgro, a global investment platform dedicated to agricultural projects. This private equity fund is being launched with initial contributions of EUR 200 million from the bank and EUR 50 million by Atitlan, and it is expected to attract other investors, with a target of over EUR 500 million.
Atgro will be managed by Elaia, a subsidiary of Atitlan for investment in the agricultural sector and which Santander also becomes a shareholder of under the terms of the agreement. While the bank will not play an active role in investments, it will contribute its broad local knowledge in different geographies and its salesforce.
From its first olive grove project in 2007, Elaia has expanded its operations to almonds, oranges, tangerines, lemons, grapefruit, avocados and pistachios in Spain, Portugal and Morocco. This has made it a leading force in the cultivation and management of agricultural processes, having transformed over 20,000 ha.
This partnership between Santander and Atitlan reflects their long-term commitment to the agrifood sector, which is in the midst of transformation and where new challenges, such as climate change, demographics and changing consumer habits, are driving the change to a more scalable and sustainable production model.
Atrgro plans to develop a broad product portfolio (dried fruits and superfruits) with geographical diversity(Europe, the Americas, Africa and Asia). To begin with, the project already has Atitlan’s investments in pistachios and has recently completed its first deal in the shape of the entry of Peru’s second largest exporter of grapes, Ecosac (with turnover of some USD 200 million), as majority shareholder. What’s more, its growth will be driven by new crops and acquisitions of assets already in production.
The fund will be open to institutional and private investors, given the great interest in this type of alternative assets with a strong economic and social impact and, at the same time, little connection to traditional financial products.
The intention is for the platform to be classified as an Article 8 fund under the Sustainable Finance Disclosure Regulation, with a commitment to promote environmental initiatives in the investment portfolio.
Alternative investment in growth segments
Santander’s participation in this platform is part of the strategy of the Investment Platforms Unit (IPU), the unit within Santander Asset Management specializing in investment in alternative growth segments to the bank’s traditional activity, such as direct lending (Tresmares), private equity (Fremman Capital), venture debt(Atempo), Special Situations Lending (Deva Capital) and venture capital (Seaya, São Paulo). Mouro Capital).
