We focus on the Asia Pacific region, with our efforts predicated on strong fundamental research – the Caudex Matrix – and in-house primary origination to identify attractive investment opportunities with enviable upside and low risk in the food and agribusiness space (see our Investment Criteria).
Asia – the epicentre of global food supply and demand dislocation
The world braces itself as the Asian middle class grows rapidly in wealth and surpasses the West for the first time since 1700. Of the 3 billion new middle class consumers expected to emerge between 2010 and 2030 globally, Asia will account for 90%; in absolute numbers, its share of the global middle class will rise from 28% to 66%. Urbanization and wealth expansion present ever-expanding investment opportunities within the agricultural value chain. Given high income-food demand elasticity, end-demand for food and agriculture products are expected to grow at a fast pace on a large scale – the main beneficiary of shifts in major Asian demographic and economic trends. (see Caudex Research in Resources)
Caudex Matrix – Agribusiness intelligence across geographies and value chains
We understand the complexity of investing in Agriculture – while many demand factors are local, frequently supply and pricing has global linkages, with a myriad of other major drivers affecting each agriculture value chain. Premised on thorough and detailed agribusiness value-chain research, Caudex Asia’s investment process embodies a disciplined framework – the Caudex Matrix – an intensive and consistent approach that involves top-down value chain analysis across sub-sectors and countries, bottom-up analysis as well as relative comparability and risk profiling. This framework informs Caudex Asia’s investment process, including targeted deal origination, business due diligence, and valuation discipline in the investment decision.
The Caudex Asia team – merging financial with agribusiness expertise
The team brings together global best practices in both financial and agribusiness sectors with a thorough grounding in Asia’s culture and politics. Our core management team from top global financial firms is supported by senior experienced agribusiness and investment professionals across the Asian region. We subscribe to global best practices in both financial practices as well as Asian agribusiness. We offer strategic vision and direction, leading-edge technology and quality relationships locally and industry-wide.