41 min

32 Aymeric Jung and Josep Segarra, from Lehman Brothers to rebuilding the food system Investing in Regenerative Agriculture and Food

    • Investing

Using flexible loans to invest over 10M into regenerative food and agriculture companies in Europe.Welcome to Investing in Regenerative Agriculture. Where I interview key players in the field of regenerative agriculture, people who are scaling up the sector by bringing in new money or scaling up the practises on the ground.Join our Gumroad community, discover the tiers and exclusive benefits here: https://gumroad.com/investinginregenagOther ways to support my work:- Share the podcast- Give a 5-star rating (if you podcast app allows it) - Or buy me a coffee… or a meal! www.Ko-fi.com/regenerativeagricultureI had a conversation with Aymeric Jung and Josep Segarra of Quadia Capital (www.quadia.ch) who have been investing in regenerative agriculture and food companies for a few years and put more than 10M to work. We discussed their backgrounds, Aymeric was at Lehman Brothers when it collapsed.Two barriers for investing in regenerative agriculture according to Aymeric and Josep:1. You have to understand that food isn’t a basic product, it is about life, it isn’t a smartphone. You need to regenerate it. It takes time! Price and costs aren’t everything. Quality vs quantity2. Long term view. If you think buying high quality food it is too expensive you can reduce your food costs by reducing animal protein.Key is externalities, the more they are integrated the easier it is to compete companies with less or positive externalities (which you invested in). Advice to starting impact investors in regenerative agriculture:1. look at emerging countries, fair trade isn’t enough, look at the value chain (or supply web as Gregory Landua would say https://soundcloud.com/investinginregenerativeagriculture/interview-gregory-landua)! 2. investing in the good companies in Europe, help them to scale and to educate their consumersNouriterre is about finding the comfort zone for traditional investors. To get into the comfort zone of traditional investors you need two things:1. (some) liquidity2. investment periods which aren’t too longNouriterre:4 years 4% annual return and some cashflow after 2 years (25%), after 3 years 50% etc.http://www.quadia.ch/investment/private.htmlDiversification, with half of the program goes to financing indexed loans to provide growth capital to SMEs in regenerative food and agriculture.Index loans, 3 years or 3.5 years. First 1 year no payback Every 6 months the company pays back a % of the gross salesThe investor is completely aligned with the company, when the company is successful the investor is and the other way around.The other 50% is invested in debt funds for food and agriculture in developing countries.Quadia was mainly investing in renewable energy and energy efficiency and started looking at agriculture because it wastes a huge amount of energy. Agriculture is a 5,5T industry with when you do it right, has a lot of spill over effects. Blackrock CEO letter, companies have a social role:https://www.forbes.com/sites/peterhorst/2018/01/16/blackrock-ceo-tells-companies-to-contribute-to-society-heres-where-to-start/Danone, the costs of capital depends on the ESG scorehttps://www.forbes.com/sites/jaycoengilbert/2018/02/20/every-cfo-should-know-this-the-future-of-banking-ties-verified-esg-performance-to-cheaper-capital/#171703797e4dSlowMoney, which Aymeric brought to the Francehttps://slowmoney.org/It is too late for being just sustainable we really need to rebuild the economy regeneratively. It’s a new economy we are building!If you want to receive an email when I upload a new episode, subscribe here eepurl.com/cxU33PThe above references an opinion and is for information and educational purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

Using flexible loans to invest over 10M into regenerative food and agriculture companies in Europe.Welcome to Investing in Regenerative Agriculture. Where I interview key players in the field of regenerative agriculture, people who are scaling up the sector by bringing in new money or scaling up the practises on the ground.Join our Gumroad community, discover the tiers and exclusive benefits here: https://gumroad.com/investinginregenagOther ways to support my work:- Share the podcast- Give a 5-star rating (if you podcast app allows it) - Or buy me a coffee… or a meal! www.Ko-fi.com/regenerativeagricultureI had a conversation with Aymeric Jung and Josep Segarra of Quadia Capital (www.quadia.ch) who have been investing in regenerative agriculture and food companies for a few years and put more than 10M to work. We discussed their backgrounds, Aymeric was at Lehman Brothers when it collapsed.Two barriers for investing in regenerative agriculture according to Aymeric and Josep:1. You have to understand that food isn’t a basic product, it is about life, it isn’t a smartphone. You need to regenerate it. It takes time! Price and costs aren’t everything. Quality vs quantity2. Long term view. If you think buying high quality food it is too expensive you can reduce your food costs by reducing animal protein.Key is externalities, the more they are integrated the easier it is to compete companies with less or positive externalities (which you invested in). Advice to starting impact investors in regenerative agriculture:1. look at emerging countries, fair trade isn’t enough, look at the value chain (or supply web as Gregory Landua would say https://soundcloud.com/investinginregenerativeagriculture/interview-gregory-landua)! 2. investing in the good companies in Europe, help them to scale and to educate their consumersNouriterre is about finding the comfort zone for traditional investors. To get into the comfort zone of traditional investors you need two things:1. (some) liquidity2. investment periods which aren’t too longNouriterre:4 years 4% annual return and some cashflow after 2 years (25%), after 3 years 50% etc.http://www.quadia.ch/investment/private.htmlDiversification, with half of the program goes to financing indexed loans to provide growth capital to SMEs in regenerative food and agriculture.Index loans, 3 years or 3.5 years. First 1 year no payback Every 6 months the company pays back a % of the gross salesThe investor is completely aligned with the company, when the company is successful the investor is and the other way around.The other 50% is invested in debt funds for food and agriculture in developing countries.Quadia was mainly investing in renewable energy and energy efficiency and started looking at agriculture because it wastes a huge amount of energy. Agriculture is a 5,5T industry with when you do it right, has a lot of spill over effects. Blackrock CEO letter, companies have a social role:https://www.forbes.com/sites/peterhorst/2018/01/16/blackrock-ceo-tells-companies-to-contribute-to-society-heres-where-to-start/Danone, the costs of capital depends on the ESG scorehttps://www.forbes.com/sites/jaycoengilbert/2018/02/20/every-cfo-should-know-this-the-future-of-banking-ties-verified-esg-performance-to-cheaper-capital/#171703797e4dSlowMoney, which Aymeric brought to the Francehttps://slowmoney.org/It is too late for being just sustainable we really need to rebuild the economy regeneratively. It’s a new economy we are building!If you want to receive an email when I upload a new episode, subscribe here eepurl.com/cxU33PThe above references an opinion and is for information and educational purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

41 min

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