Australia’s leading independent law firm, Corrs Chambers Westgarth, has advised Laguna Bay Pastoral Company (Laguna Bay) on the establishment of Laguna Bay Fund 2, a food and agriculture investment fund set to raise up to A$1 billion. Corrs also assisted in the cornerstone A$350 million commitment by Washington State Investment Board (WSIB).
Laguna Bay Fund 2 is Laguna Bay’s third investment vehicle, and second flagship fund, having successfully originated, structured, managed and exited institutional grade assets in its first two vehicles. The team was involved in the largest agricultural transaction of 2020 being the successful sale of Australia’s largest almond portfolio.
Fund 2 will pursue a diversified portfolio of high-quality food and agriculture investments in targeted regions across Australia and New Zealand. Sectors will include midstream processing and infrastructure assets and downstream distribution assets, including vertically-integrated agribusinesses. In an expansion of the traditional strategy, the Fund may also target strategic share investments in listed companies.
Corrs advised Laguna Bay on all aspects of the launch and establishment of Laguna Bay Fund 2, led by partner Fadi Khoury and supported by special counsel Jaclyn Riley-Smith, senior associate William Lehane and other experts across the Financial Sponsors Group.
Commenting on the matter, partner Fadi Khoury said: “We recognise the potential of this fund, given opportunities arising from the projected growth in world population and need to increase food and agricultural production.
“As markets shift, this is a prime example of our work advising investors and fund managers on defensive asset investment strategies being deployed in a deepening inflationary environment.”
Tim McGavin, Founder and Managing Director of Laguna Bay said: “We are excited about Laguna Bay Fund 2 which builds on our reputation as one of Australia’s leading food and agricultural investors.
“We are also an early adopter of the Principles of Responsible Investing, sustainable farm management and carbon assessment. We are among the leading pack in measurable emissions reductions with two of our firm’s farming enterprises being ISO accredited as carbon neutral.”