Investments

8F announces the first closing of its South-East Asia land-based Salmon Aquaculture Fund

Several operational milestones have been completed over the past year including acquiring new plants, partnering with international governments and strengthening senior management.

8F Asset Management (“8F”), the impact-focused private equity firm, is pleased to announce the first closing of its 8F Aquaculture South-East Asia Fund at US$ 61 million from a global network of institutional, sovereign and family office investors. The Fund is targeting US$ 120 million in total commitments.

8F aims to tackle the global challenge of healthy and sustainable protein production in a responsible and environmentally friendly way while generating compelling returns for investors. To that aim, it has created Pure Salmon, a sustainable land-based salmon farming business that builds and operates vertically-integrated aquaculture production and processing facilities around the world.

This second vehicle is a follow-on to 8F’s Fund I, which has financed operations in the US, France and Japan. Fund I closed oversubscribed in 2020 with US$ 360 million of commitments. 8F’s investors to date include several Sovereign Wealth Funds, Pensions and Insurance institutions as well as strategic stakeholders, such as fish-feed giant Nutreco and leading global agricultural group Louis Dreyfus Co.

 

“This successful first close extends Pure Salmon’s footprint in South-East Asia and is a significant milestone towards our goal of supplying the world with clean, healthy, locally produced protein while creating new opportunities for the local community”, commented Stephane Farouze, Chairman and co-founder of 8F and Board Director of Pure Salmon. “The success of the South-East Asia fund is driven by an increased need for innovative solutions to improve the sustainability of our food systems and to address the rapidly-growing protein demand from middle-income classes in the region.”

 

He continued: “With the recently announced acquisition of Pure Salmon Kaldnes and our newly formed partnership with ADIO in the UAE, we have firmly put Pure Salmon on the map as a world leading provider of sustainable protein.”

Brunei – Aquaculture excellence centre for the region

The newly-raised South-East Asia fund will be deployed towards the construction and operation of a 10,000 tons per annum Recirculating Aquaculture System (“RAS”) facility in Brunei for distribution to the regional market. The facility, the first and largest of its kind in South-East Asia, is being developed in partnership with the Strategic Development Capital Fund, a Brunei Government Trust Sub-Fund under the purview of the Ministry of Finance & Economy, established to provide long-term financial sustainability for the country through diversification of investments that will generate economic growth.

The project contributes to the scaling and further development of Brunei’s fast-growing aquaculture ecosystem, and once complete will generate up to 170 local jobs. Pure Salmon’s footprint in South-East Asia is also attracting significant foreign direct investment for Brunei, with several global investors having already participated or planning to join the subsequent closing.

Pure Salmon will distribute a mix of branded fresh and smoked Salmon products to the South-East Asian markets targeting traditional retailers, e-commerce platforms, and the tourism-driven hotels, restaurants and the catering sectors of neighbouring Thailand, Singapore, Indonesia, Malaysia, and the Philippines. To reduce waste, the processing by-products will be transformed into branded Pet Treats aimed at the region's rapidly expanding domestic animal market.

Pure Salmon’s mission to address strategic food security issues, its alignment to the UN’s Sustainable Development Goals, and its commitment to local supply-chains has led it to form strong partnerships with governments around the world. The Brunei facility is one example, as is the recent announcement of its collaboration with the Abu Dhabi Investment Office (“ADIO”). The partnership, announced by ADIO in August, will see Pure Salmon establish its global headquarter in the emirate, thereby helping to strengthen the UAE’s aquaculture capabilities.

As part of a plan to expand Pure Salmon’s footprint globally, 8F is working on follow-up funds in other locations with further facilities planned in the Middle East and China.

Strong Momentum and strengthening management

8F recently announced its acquisition of the aquaculture division of Kruger Kaldnes. The company, renamed Pure Salmon Kaldnes, is a leading provider of RAS, offering a full range of value-add services, including maintenance, consulting, operational support and training. Its clients include some of the world’s largest fish farming companies.

8F also recently announced the hire of Peter Liu as CFO and COO. Peter’s career has spanned nearly three decades, holding various senior roles within the financial services and asset management industries, including as KKR’s CFO of Europe, based in London and subsequently the CFO of Asia Pacific.