Archer Daniels Midland, Continental Grain Plan Alts. Funds

May 2 2011 | 1:40pm ET

Two agribusiness giants are dipping their toes into alternative investments.

Archer Daniels Midland and Continental Grain have both launched funds making agricultural investments. The former's ADM Investor Services brokerage unit is readying a fund of commodity trading advisors, while the latter's Arlon Group has begun fundraising for agriculture-linked funds investing in commodities, private equity and stocks.

Both firms may be using larger rival Cargill Inc. as a model: Cargill began fundraising for its Black River Asset Management commodity hedge fund unit last year.

"It's just another way to leverage our knowledge in a slightly different business model," Arlon's Matthew Keegan told Bloomberg News. "You start to collect fees and revenues based on managing assets rather than by crushing soybeans or transporting grains."

Arlon is also planning to raise outside money for its $300 million Arlon Food & Agriculture Partners private-equity fund.

ADM Investor Services filed a private placement notice with the Securities and Exchange Commission on April 15. The new fund will invest in a set of CTAs trading interest rates, currencies and agricultural and energy commodities. ADM Investor Services President Thomas Kadlec told FINalternatives the fund will be monitored by an investment committee made up of Balarie Capital Management chief Emanuel Balarie, Jack Schwager and members of ADM Investor Services' senior management team

The new fund will offer diversified exposure to a basket of commodity trading advisors.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR