By Gerelyn Terzo, Global AgInvesting Media
AMERRA Capital Management, a U.S.-based asset manager specializing in food and agribusiness encompassing sustainable agribusiness and renewable bio-energy investments, has experienced a change in its ownership structure. The firm has completed a successful management buyout by co-founding partners Craig Tashjian and Nancy Obler, who together are acquiring 50 percent of AMERRA shares from M.D. Sass FinStrat AMERRA Capital Holdings and Macquarie.
Founded in 2009, AMERRA Capital plays a key role in ag industry dealflow, delivering financing and capital solutions all across the food and agribusiness value chain. With both private debt and private equity investments, the firm boasts over $5 billion in capital invested alongside a war chest of $800 million in committed and drawn capital from its client base, which largely comprises U.S. institutions.
The buyout marks the end of a decade-and-a-half partnership between AMERRA Capital, FinStrat and Macquarie, one that has served the firm well over the years. Tashjian and Obler envision a smooth transition amid a continuity in senior leadership including their history at the firm buttressed by the anchor of their deep understanding of the ag investor landscape.
AMERRA Chief Investment Officer Craig Tashjian and Co-Founder Nancy Obler graciously spent some time with GAI News to shed further light on the successful buyout.
1.) GAI News: Congratulations on the successful management buyout! Was this considered a unique ownership structure from the onset?
Tashjian and Obler: “When AMERRA was founded in 2009, in partnership with M.D. SASS-MACQUARIE FINANCIAL STRATEGIES, L.P. (“Finstrat”), a private equity fund that seeded asset managers in the alternatives space and Macquarie Inc. (“Macquarie”) via their Fixed Income Currencies and Commodities Group, the structure was fairly typical for emerging asset managers seeking institutional capital. This transaction results in AMERRA’s three principals owning 100 percent of the firm.”
2.) GAI News: What has the FinStrat and Macquarie investment in AMERRA Capital enabled the firm to do?
Tashjian and Obler: “The firm was launched in 2009 and together raised a series of private debt, special situations and private equity funds, exclusively focused on food and agribusiness with a geographic footprint largely in the Americas.”
3.) GAI News: Could you share any insights on the timing of this deal? Was it always the intention for them to eventually exit?
Tashjian and Obler: “Financial investors generally seek to monetize their investments after an investment period and the parties reached a mutual agreement with respect to timing.”
4.) GAI News: Will there be any changes to the investment strategy, including the involvement of both private debt and private equity?
Tashjian and Obler: “Since inception, AMERRA has always focused on the food and agribusiness sector. We will continue to do so given the meaningful investable footprint, predominantly private, inefficient and difficult to access market and recession resistant, inflation protected, dollar denominated and uncorrelated to other asset class characteristics, making it a highly attractive asset class.
“AMERRA’s future investment strategy will be Private Debt and Special Situations with a thematic focus on natural capital and Latam, especially Brazil. In the natural capital arena, AMERRA will focus on financing projects promoting yield improvement, renewable biofuels, carbon capture, soil health, energy and water efficiency, reduced waste and communal benefits among others. We will also partner with a sustainability expert to provide measurement, verification and reporting complementary to AMERRA’s detailed underwriting process. AMERRA’s current portfolio composition will remain unchanged.”
5.) GAI News: Will any of the Macquarie or M.D. Sass FinStrat executives stay involved in any capacity?
Tashjian and Obler: “Finstrat will continue to provide certain limited shared services on a fully arm’s-length basis.”
6.) GAI News: How is the future pipeline shaping up for early 2025?
Tashjian and Obler: “We believe the pipeline for natural capital focused senior secured debt in Latam and special situations in Brazil is robust. With respect to the existing portfolio, AMERRA’s investment team actively seeks to maximize values upon exit for all stakeholders as clearly demonstrated by the recent exit of Salto Botelho Agroenergia as written about by GAI.”
Indeed. GAI News would like to congratulate AMERRA Capital on the successful buyout and thank Craig and Nancy for their contribution!
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