Equilibrium closes industry’s largest CEA fund at $1.022 billion
Equilibrium, a leader in controlled environment agriculture (CEA) and carbon transition infrastructure (CTI), has closed its Controlled Environment Foods Fund II (CEFF II) at $1.022 billion.
Like Equilibrium’s predecessor CEA fund, its CEFF II strategy is focused on high-tech greenhouses, indoor farms, and other CEA segments of alternative proteins and aquaculture. CEFF II’s final close exceeded its targeted $500 million, reflecting the magnitude of the opportunity and growing importance of CEA in our food system. Both Equilibrium CEF funds are institutional investor led, reflecting investors’ belief in the CEA transformational shift in agriculture. Equilibrium pioneered the developmentof controlled environment agriculture into an institutional asset class and is one of largest investors globally in this space.
CEFF II will invest primarily across North America and has made three investments to date – two in the US and one in Mexico.Principal areas of investment include the more mature high wire crops of tomatoes, peppers and cucumbers, as well as the emerging categories of leafy greens and berries.
“Agriculture is ground zero for sustainable use of our natural resources, climate risk, and climate adaptation,” notes Dave Chen, CEO, Equilibrium. “In the next decades, the agriculture industry, globally, will be called on to provide more food, more safely, of higher quality, with greater diversity, in a more climate challenged world with a shrinking arable, and more inhospitable, landscape. CEA addresses many of these emerging global realities.”
“Equilibrium’s CEFF II provides the leaders in greenhouse agriculture and CEA access to large blocks of capital, enabling leading operators to scale at the pace of the market’s growth,” adds Dave.
Investors and retailers are increasingly looking for more sustainable, and less volatile ways to invest in and scale agriculture.
CEA shifts agriculture from a land centered industry where the land, geography and weather determines what can grow, into a climate resilient industry that can now focus on the consumer’s demand for the fresh, safe, and regional fruits and vegetables they want to eat.
CEA delivers on sustainability, using 90% less water and can be up to 30x more productive per acre than field grown alternatives. High tech greenhouses offer the retailers and consumers a stable and resilient 365-day supply of produce that is sheltered from the effects of extreme weather volatility and food safety issues associated with field grown produce.
Technology mitigates the biggest driver of volatility in quality and supply in agriculture, the weather. Additionally, CEA puts agriculture on the technology productivity curve which directly impacts cost, quality, and consumer experience. CEA technology is shifting agriculture from a fragmented land centered grower industry into scaled produce production infrastructure.
Equilibrium develops market leading sustainable finance and active ESG strategies and portfolios in controlled environment foods and carbon transition infrastructure for institutional investors. Equilibrium has offices in Portland, Oregon, San Francisco, California, London, England and Singapore.