NOW AVAILABLE – Now open to new investment.
“We need to produce 70% more food while simultaneously moving towards eliminating emissions all together. It will take a lot of new ideas!” – Bill Gates, How to Avoid a Climate Disaster 2021
Spire Capital Pty Ltd (“Spire”) continues to have high conviction in select pockets of the global private markets (i.e. ‘sweet spots’). As a private markets firm, we are excited for the future as we believe private markets have a structural advantage (relative to public markets) in accessing investments at the forefront of prevailing mega-trends. This includes impact investments whereby patient capital can be paired with active business plans to generate tangible outcomes in line with the UN Sustainable Development Goals. We are excited to be investing in the Food Security and Sustainability strategy in partnership with a high-quality investment adviser – Cibus Capital LLP (“Cibus Capital”) ( formerly ADM Capital Europe LLP).
Spire has partnered with Cibus Capital, a limited liability partnership in the United Kingdom, to enable Australian investors to invest in the CIBUS Fund II (“CIBUS II” or “The Underlying Fund”) strategy, capitalising on emerging and accelerating shifts in the sustainability and procurement of food. The future of food is being shaped by regulatory push and consumer pull, both of which have undergone an acceleration in their rate of change in recent years.
The key regulatory push factors centre around the key tenets of the Paris Agreement; a reduction of 50% in Green House Gas emissions by 2030 and “Net Zero” by 2050. There is a growing trend from governments across the globe to introduce policies, regulation and programs that both encourage and support farmers and landowners to change the way they produce food and use their land. Since 1947, there have been 2,211 climate laws and policies passed, planned, or approved globally, 2,056 of which were introduced since 2000. This policy shift will likely create significant investment opportunity. The key consumer pull factors are a result of growing interest in health and wellbeing, not only of individuals, but in the natural capital that supports the growing global human population. Food production is increasingly being scrutinised for its use and abuse of inputs, as well as the impact intensification of food production on the environment; in particular, water course pollution and soil degradation, as well as the potential long-lasting imbalances inflicted upon natural capital.
The CIBUS team has seen that traceability and transparency in the supply chain, has resulted in increasing demand for “better for you” and organic products as well as “clean label” inputs and ingredients, as consumer priorities shift. The total global wellness market is estimated to be USD 1.5tn with a CAGR of around 10%.