Sunday, 7 February 2016
Last updated 1 day ago
Sep 1 2010 | 10:35am ET
Commodities hedge fund shop Galtere is getting into the private equity business with a new fund that invests in industrial commodity production.
The new fund is managed by Renatto Barbieri, formerly of Deutsche Bank Global Markets’ own natural resource private equity business, and aims to profit from what Galtere calls “inverse stagflation”: the concomitant decrease in value of financial assets and increase in agricultural and other real assets.
“I believe the geography, supply and demand conditions and resources of the countries we have targeted present a wealth of attractive agricultural projects, and we have already begun to invest in projects that offer excellent long term growth potential,” Barbieri said. “The current global and financial conditions make it an ideal time to be launching this strategy, and we are excited at what we can achieve for our investors.”
The fund will invest in a variety of macro-driven global agribusiness opportunities, especially those in agricultural production, infrastructure, technology and soft-food staples. The firm has identified Australia, Brazil and Uruguay as the most promising countries for investment, and aims to help portfolio companies boost efficiency, production and profits over a seven-year timeframe.
Galtere, which manages $1 billion, hopes to raise another $1 billion for the private equity fund, concentrating its marketing efforts on institutional investors, endowments and family offices.