Friday, August 11, 2017

Grantham Mayo Van Otterloo Is Selling Their Forestry/Agriculture Joint Venture

Via Farmlandgrab, August 4:

TRG to buy GMO renewable resources
The Rohatyn Group (“TRG”), a specialized asset management firm focused on emerging markets, global investment management firm Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”), and GMO Renewable Resources, LLC (“GMORR”), a joint venture between GMO and the GMORR principals that invests in forestry and agriculture opportunities, today announced that they have entered into a definitive agreement whereby TRG will acquire the GMORR business from GMO and the GMORR principals. Under the agreement, the team from GMORR is expected to move, intact, to TRG. GMO, which currently owns 51% of the GMORR joint venture, with the GMORR principals owning 49%, will retain its investments in funds managed by GMORR.

Founded in 1997, GMORR provides investment opportunities in forestry and agriculture investing. The team, led by founder and Managing Director Eva Greger, manages sustainable investments in hardwood and softwood forests of various species, as well as direct investments in rural land, crop, and livestock assets that produce food, fiber, and energy. GMORR manages approximately $2.1 billion in rural real estate assets across eight countries and 600,000 hectares. Thirty-four percent of GMORR’s assets under management are invested in emerging markets.

Since TRG’s inception in 2002, the firm has opportunistically expanded its expertise, both organically and through strategic acquisitions, to encompass a full range of emerging markets investment strategies, including private equity and credit, real estate, infrastructure, fixed income, and hedge funds. The firm’s sophisticated, international investor base includes several of the world’s most respected sovereign wealth, pension funds, and financial institutions. The addition of GMORR will further enhance TRG’s investment capabilities and product offerings and complement its institutional investor relationships. Following the transaction, the firm will have more than $6.6 billion in total assets under management and a global footprint of 18 offices worldwide, including new offices in Boston and New Zealand.

Nicolas Rohatyn, Chief Executive Officer and Chief Investment Officer of TRG, said, “Timber and agriculture, both important sectors in many of the countries where TRG invests, are a natural complement to our existing knowledge base and skill set. Powerful secular dynamics, including growth of the middle class, increasing urbanization, and access to sustainable resources, underpin opportunities in emerging markets as well as forestry and agriculture. Each layer of knowledge that we add enriches TRG’s ability to deliver best-in-class returns to our LPs across asset classes and increases our relevance to a broader range of investors. We believe that GMORR is the ideal partner with whom to pursue the promising synergies between emerging markets and global timber and agriculture.”

Eva Greger, Founder and Managing Director of GMORR, said, “TRG provides a complementary platform from which to extend our long track record of forestry and agriculture investing around the world. TRG has a deep understanding of the nature and structure of long-term illiquid investments, and we look forward to leveraging TRG’s local knowledge and expertise in the countries where we currently operate, as well as select new locations, as we continue to create investment opportunities for our clients in sustainable, innovative, long-term forestry and agriculture investments.”

Jeremy Grantham, Chief Investment Strategist and co-founder of GMO, said, “GMO continues to believe strongly in the long-term merits of forestry and agriculture investing. We worked with our GMORR colleagues to identify a partner who offers a culturally-aligned organization and will best serve our clients. GMO will remain invested in GMORR funds, and we look forward to a continuing relationship as the group thrives within TRG.”....