Paine Schwartz Partners has announced the closing of its Food Chain Fund VI at $1.7 billion of capital commitments.
Paine Schwartz is a private equity firm that specializes in sustainable food chain investments, focusing on two core themes: increasing productivity and sustainability across global food systems and a consumer focus on health and wellness.
The new fund is the largest of the firm’s funds to date, exceeding the firm’s fundraising target, and it includes investments from pension funds, sovereign wealth funds, foundations, and family offices. Fund VI has already been deployed by about 40%, toward investments in AgroFresh Solutions, Costa Group, Elemental Enzymes, HGS BioScience, and Monterey Mushrooms.
“With Fund VI, we are continuing to invest to feed a growing population better food with more efficient use of resources,” said Kevin Schwartz, CEO of Paine Schwartz. “Food and agribusiness has been the fastest growing sector for more than 15 years and continues to be underserved by the investment community. We look forward to leveraging our deep knowledge, industry relationships, and thesis-driven approach to capture the numerous attractive value creation opportunities we see ahead.”
Paine Schwartz’s Approach to ESG Integration in Agribusiness
Along with following globally recognized standards for ESG practices, such as TCFD and SASB guidelines, Paine Schwartz works to integrate ESG practices within its portfolio companies.
Paine Schwartz begins by sourcing portfolio companies that maintain high sustainability standards, then undergoes a screening process to assess ESG risk and opportunity. Once investments are made, the company’s team works to monitor portfolio companies and implement a culture that emphasizes corporate responsibility. At the same time, Paine Schwartz helps companies use data to create action items for meeting ESG goals, then follows up to ensure companies are able to maintain the implemented framework. For example, Paine Schwartz helped portfolio company Urban Farmer set goals to achieve a landfill diversion rate of 74% and reduce waste in shipping products to retailers.
Paine Schwartz now has $5.7 billion of assets under management and continues to work towards making a positive impact through responsible investment practices.
