Criteria

Our investment approach is based on the Caudex Matrix – our in-depth proprietary research analysis and investment framework. Premised on detailed agribusiness value-chain research, the framework embodies a consistent approach that involves top-down value chain analyses across sub-sectors and countries, bottom-up fundamental analysis, as well as relative comparability and risk profiling. This approach also extends to Caudex Asia’s investment process – viz. targeted deal origination, business due diligence, and valuation discipline. Our general guidelines for investments are:

Geography

We invest primarily in privately-owned businesses operating within the Asian food and agricultural space, including Australasia, excluding Japan.

Size

We will review opportunities in the range of US$5 to $50 million per investment.

Investment universe

Our coverage ranges from farm to fork – including seed production, tissue culture, crop sciences, land holdings, plantations, forestry, fertilizer, disease/pest control inputs, feed-meal, waste recovery, recycling, post-harvest technology, carbon credits, logistics, transportation, processing, distribution, marketing and farm equipment leasing.

Sustainability

We aim to grow and support agriculture businesses that incorporate policies geared towards the protection and preserving the sustainability of the environment.

Value add

Our mandate is to add operating value to our investments by providing:

  • Strategic value-driven oversight of the sector
  • Integration opportunities along the value chain to access more profitable segments
  • Identifying and extricating trapped value in operations
  • Formulating best practices marketing
  • Access to appropriate best-of-breed technologies
  • Pricing synergies with other businesses in our portfolio
  • Advice in planning and preparing for IPO
  • Advice with IPO in selection of the listing venue, investment banking sponsor, and other capital market choices

Our interest is to maximize long-term value, measured not only financially but also in terms of market reach, brand effectiveness, and a platform for further growth.

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