The Regenerate Ventures Agtech Fund is an Alternative Investment Fund, which will provide a portfolio of investments in agricultural technology (agtech) companies. The target return for the fund is 5x the capital invested, after fees, in seven years. Returns will be focused on capital gains, and investors are unlikely to receive any dividends. The fund is evergreen.

Why invest

Positives

• Strategy: To invest in a portfolio of high-growth agtech companies at the seed to Series A stages.

Issues

• Track record: The manager has been investing for one year, and has a limited track record.

The investment manager

Positives

• Team: The team has a broad range of entrepreneurial, agtech and professional investing experience.

Issues

• Size: The ventures team is small but can draw on the support of Regenerate Asset Management and its Advisory Board.

Nuts & bolts

• Duration: The fund is evergreen, although funds will be raised and deployed in tranches.
• Diversification: The manager aims to provide at least five investments in each tranche, with the aim of increasing numbers as it raises more funds.
• Valuation: Reports will be sent out semi-annually, with movements on subsequent funding rounds.

Fees

• Fees: A combination of direct fees and company charges.
• Performance fee: Charged at 20% on aggregate returns over 108% of subscription.

Risks

• Target returns: The target of 5x invested capital suggests a high-risk investment strategy.
• Companies: Supplying risk capital to early-stage technology companies. There will be a spread of company returns, as the successful ones will do very well, but those that fail may do so completely.