OUR INVESTMENTS

New Zealand Dairy Industry and Impact Investment

Over the previous 25 years, mismanagement of dairy farmland through conversion of marginal land, intensification, over leveraging, irrigation, deep tilling, mono-cropping, the overuse of chemical fertilisers and pesticides has led to degraded soils, polluted water catchments, depleted ecosystems, higher GHG emissions and disenfranchised rural communities throughout New Zealand.

Achieving positive environmental & social impact

Impact investment has become increasingly common around the world as a means of achieving positive environmental and / or social impact whilst providing a positive financial return. Targeted interventions and land use change on dairy farms can achieve significant environmental and social impact and a competitive return on investment. This impact investment opportunity is aligned with increasingly aware public, political and investor expectations that the environmental impact of intensive, conventional dairy farming in New Zealand needs to be significantly reduced.

AgRegen believes climate change is an urgent issue that creates risk for the entire world and is one we can only address if we act in advance and in solidarity.

In this period of unprecedented disruption and structural reshaping of the global economy, AgRegen’s ambition is to help make the planet one where our grandchildren will want to live in.

OUR APPROACH

As farmers ourselves, we believe building natural capital for future generations can be done profitably.

There is an urgent need to address climate change, both in building resilience towards it’s impacts and being part of the solution. Agriculture needs to be part of the solution towards addressing climate change and decarbonising our economy.

Bring together investors to fund projects that target impactful land use changes.

AgRegen’s aim is to bring together investors to fund projects that target impactful land use changes on dairy farmland to achieve significant environmental and social impact and a competitive return on investment. A key AgRegen operating principle is that management participate in a meaningful way in the wealth created by operating farms and permanent forestry.

Investment Objectives

• Investing capital to turnaround degraded land at scale that creates strong financial returns and align with investors’ personal values and risk / return objectives.
• Effect meaningful change in re-purposed farmland, the surrounding environment and the local community that will mitigate ecological degradation, address social issues and promote healthy communities that will endure over time.
• Generate industry-leading positive and measurable economic, social and environmental impacts for the wider New Zealand farming, forestry and investment sectors.

RESILIENT RETURNS

Positive Environmental Impacts:

Investment to bring positive environmental outcomes including improved freshwater quality in sensitive catchment areas, water retention, sediment runoff, biodiversity, restoration of native habitats for native flora and fauna, as well as lowering greenhouse gas (carbon dioxide, nitrous oxide and methane) emissions.

Increased Carbon Capture:

Improved carbon sequestration through the build-up of soil organic matter (SOM). The build-up of SOM also improves climate change performance and delivers improved consistency of production and yields.

Societal Benefits:

Building the resilience and well-being of society, community amenities, recreation activities, tourism potential, and local business.

Value Investing:

Profitable resilient low-cost businesses delivering cash returns whilst growing longer term asset value, targeting total client internal rate of return of 15-18% p.a.

Risk Reduction:

Greater resilience against climate change, litigation and reputational risk positions AgRegen for stronger long-term performance.

Our investments align with many of the sustainability themes and metrics outlined by the UN Sustainable Development Goals.