Santander and Atitlan have signed an agreement to create Atgro, a global investment platform for agricultural products.
The private equity fund is starting with EUR200m from Santander and EUR50m from Atitlan. However, the target is over EUR500m.
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Atgro will be managed by Elaia, a subsidiary of Atitlan for investment in the agricultural sector and which Santander also becomes a shareholder of under the terms of the agreement.
In addition, while the bank will not play an active role in investments, it will contribute its broad local knowledge in different geographies and its salesforce.
From its first olive grove project in 2007, Elaia has expanded its operations to almonds, oranges, tangerines, lemons, grapefruit, avocados and pistachios in Spain, Portugal and Morocco.
This partnership between Santander and Atitlan reflects their long-term commitment to the agrifood sector, which is in the midst of transformation and where new challenges, such as climate change, demographics and changing consumer habits, are driving the change to a more scalable and sustainable production model.
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By GlobalDataAtrgro plans to develop a broad product portfolio (dried fruits and superfruits) with geographical diversity (Europe, the Americas, Africa and Asia). To begin with, the project already has Atitlan’s investments in pistachios and has recently completed its first deal in the shape of the entry of Peru’s second largest exporter of grapes, Ecosac (with turnover of some $200m), as majority shareholder. What’s more, its growth will be driven by new crops and acquisitions of assets already in production.
Furthermore, the fund will be open to institutional and private investors, given the great interest in this type of alternative assets with a strong economic and social impact and, at the same time, little connection to traditional financial products.
