First look
‘Ripe for automation’ – Inside KKR’s food processing play
“Food is not an easy thing to automate because it’s natural and it’s amorphous,” KKR partner Joshua Weisenbeck tells Agri Investor.
“It’s not like a piece of metal that is the same every time. You really need more advanced technology, vision systems, more advanced robotics and software to automate.”
KKR has a history of agricultural investment – through both impact and credit strategies – but its latest food sector effort comes from its flagship America Fund XIII and may be its most ambitious yet.
The firm began laying the groundwork in 2021 when it acquired Bettcher Industries, an Ohio-based manufacturer of semi-automated tools for pork and beef processing, which has since grown to become Fortifi Processing Solutions, a global automation platform with at least 16 integrated businesses operating across 33 sites.
The most recent addition to the platform came at the start of June with the acquisition of Area 52, a Canadian producer of crustacean processing equipment.
“Food processing is this global, large industry that is really critical to every human, but it’s really behind the automation curve,” says Weisenbeck, who sits on KKR’s investment committee and joined the firm in 2008.
“As we looked at the food processing industry and the major players, we felt like it was ripe for consolidation and leadership.”
Read the full story here.
They said it
“I would say now there’s some comfort level around expectations… and so I think in total 2025 will be less than what we were hoping, but hopefully in line with 2024”
Neuberger Berman managing director Kaci Boyer (registration required) told the City of San Jose Police & Fire Department Retirement Plan she expects to see an uptick in distributions in the second half of 2025, our colleagues at Venture Capital Journal report.
Biochar
How to sell £200 carbon credits via UK’s biochar market
The UK’s first high-profile biochar carbon credit deal was completed in June when sustainable architecture firm Bennetts Associates purchased 8.6 tonnes of carbon removal credits from Restord, a biochar producer based in Cornwall.
Bennetts Associates paid £200 million ($271 million; €237 million) per tonne – the firm has a 50-tonne pre-purchase agreement in place with Restord at this price point.
The credits were generated using on-farm biochar production technology developed by British company CapChar and certified under its Biochar Carbon Code.
The deal marks a key moment in the evolution of the UK’s carbon removal marketplace, which is being stimulated by growing demand for locally produced, verified carbon removals.
Agri Investor spoke to CapChar co-founder Adam Samuel to understand how this nascent market works.
Our explainer article includes a breakdown of how carbon credits are generated and monetized in this market, the Biochar Carbon Code, permanence and monitoring, and market growth.
Read the full story here.
Fund watch
France Valley’s €600 million milestone
French natural capital asset manager France Valley has taken more than €600 million in capital commitments for its evergreen forestry fund.
France Valley Patrimoine was launched in 2017 and is fully invested in French timberland.
The firm’s flagship vehicle has amassed a portfolio of more than 35,000ha, 80 percent of which is aligned with the EU taxonomy for sustainable activities, according to a statement from the firm.
France Valley Patrimoine’s net asset value rose 6.33 percent in 2024 and has experienced a cumulative rise of 17.5 percent since inception.
Chief executive Arnaud Filhol commented: “This close marks a significant step in our journey as a European platform dedicated to natural capital.
“We offer institutional investors access to stable, inflation-resilient real assets that are directly linked to climate and biodiversity outcomes.”
Read the full story here.
SWEN Capital hits €160 million first close
SWEN Capital Partners held a €160 million first close on its SWEN Blue Ocean 2 fund, which has a €300 million target.
The Article 9 fund invests in start-ups that tackle the three “existential threats affecting ocean biodiversity, which include over-fishing, pollution and climate change.”
Blue Ocean 2 fund has been backed by the European Investment Fund, France 2030, Bpifrance, Macif, Abeille Assurances, Matmut, Suravenir, Mutuelle de Poitiers and CPSTI.
SWEN Capital Partners chief executive Jérôme Delmas commented: “We are acutely aware of the responsibility we bear as investors, and of the role we can play by supporting high-impact projects with strong transformative potential – projects that can make a tangible contribution to the regeneration of marine biodiversity.”
The firm closed Blue Ocean I on €170 million in 2023, exceeding the impact fund’s €120 million target.
Read the full statement here.
Mekong Capital puts Earth fund on ice
Vietnam-focused private equity firm Mekong Capital has postponed the launch of a regenerative agriculture fund until 2026.
Bloomberg reported last week that Mekong Capital was planning to launch a new agriculture fund next year with a target of $200 million.
A Mekong Capital spokesperson confirmed that this is the same Mekong Earth Regeneration Fund that Agri Investor reported on last year, which Mekong Capital had planned to launch in 2025.
The fund has undergone several revisions, after first appearing on affiliate title Private Equity International’s radar in 2023 under the name Mekong Earth and Forest Fund (registration required). Mekong Capital’s other funds include the Mekong Enterprise Fund series, of which a fourth vintage closed on $246 million in 2021.
MEF IV’s portfolio of investments includes Vietnamese chocolate producer Marou Chocolate, insect protein producer and processor Entobel, and biochar-based fertilizer company Husk.
VC fundraising
Coco Robotics, a Los Angeles-based autonomous food delivery start-up, raised $80 million in a funding round backed by Sam and Max Altman, Pelion, Outlander, SNR, Offline, DeepWater and Ryan Graves.
Zayndu, a British seed priming technology provider, raised a £1.5 million ($2 million; €1.8 million) funding round led by Foresight Group, with participation from Growthdeck and EIS investors.
Archeda, a Japanese start-up that uses satellite data to develop and provide monitoring and analysis tools for carbon credits, received an investment of an undisclosed size from Mitsubishi Electric Corporation through its ME Innovation Fund.
XRobotics, a California-based provider of kitchen robots for pizza-making, raised $2.5 million in a seed funding round led by FinSight Ventures, with participation from SOSV, MANA Ventures, and Republic Capital.
Sauz, a Los Angeles-based tomato sauce start-up, raised $12 million in funding round led by CAVU Consumer Partners, with participation from Coefficient Capital, Palm Tree Crew and Strand Equity, among others.
Lembas, an Israel-based bioactive peptide discovery company, raised $3.6 million in a pre-seed funding round led by FLORA Ventures, with participation from Bluestein Ventures, Fresh Fund, Longevity Venture Partners, Maia Ventures, Siddhi Capital, Mandi Ventures and SDH.
Tastewise, a New York-based provider of a GenAI platform for food and beverage intelligence, raised $50 million in a funding round led by TELUS Global Ventures, with participation from Duo Partners, PeakBridge, Disruptive AI and PICO.
Also in the news…
Veripath adds 3,800 acres to Canadian farmland portfolio The acquisition brings the total acres under ownership across all funds to approximately 138,000 acres (WJBF).
$8 billion windfall for Circle’s VC backers General Catalyst and IDG Capital were the biggest winners in Circle’s IPO, with each holding 20.9m shares valued at $1.7 billion at the closing price of $83.23 (Venture Capital Journal (registration required)).
FDA clears Wildtype’s cell-cultivated salmon for US debut San Francisco-based Wildtype will be the first company to launch cultivated seafood in the US after securing a Food and Drug Administration ‘no questions’ letter (AgFunder).
PAI Partners seeks cherry on top with second CV for ice-cream maker The European investment firm is after a double scoop on ice cream maker Froneri, having completed a concentrated multi-asset deal on the asset in 2019 (Agri Investor).
BlueEarth provides a $30 million impact-linked credit facility to Valency International Valency is a Singaporean global trader, processor and exporter of agricultural commodities with a specialty in edible nuts (Blue Earth Capital).
Bunge nears China ruling for $8.2 billion Viterra merger US grains merchant Bunge is close to getting a ruling from Chinese regulators on its $8.2 billion purchase of Glencore-backed Viterra with a verdict expected within days (Reuters).
Today’s letter was prepared by Binyamin Ali, Chris Janiec and Tom Taylor
