Capital Mad successfully raises $78 million in an oversubscribed fund, aiming to link traditional finance with regenerative agriculture.
Mad Capital Closes Perennial Fund II at $78.4 Million, Signals Growing Interest in Regenerative Agriculture
Mad Capital, a pioneering impact investment firm, has successfully closed its Perennial Fund II (PFII) at an impressive $78.4 million. This marks a significant milestone for the company, as PFII is more than 7 times the size of Mad Capital's previous fund, which closed in 2021.
The fund's success is attributed to a growing interest in the food system that has emerged since around 2020. More people, even those outside of the agrifood industry, are becoming familiar with issues in the food system and the need to reduce chemicals and raise healthier crops and animals. Mad Capital, with its mission to build a bridge between Wall Street and organic farmers, has been at the forefront of this movement.
Early commitments for PFII came from notable organisations such as The Rockefeller Foundation, Builders Vision, and the Schmidt Family Foundation. Additional investment was secured from Social Finance, Innovaciones Alumbra, the New Mexico Finance Authority, Bedari Collective, the McConnell Foundation, and other investors, totalling 111 investors in all.
As investors continue to rotate into more defensive positions, one way they are doing this is by getting access to private credit, especially in uncorrelated asset classes. Mad Capital's focus on impact investing in the regenerative agriculture sector provides such an opportunity.
With the success of PFII, Mad Capital is now looking towards the future. The conceptualization of Mad Capital's Fund III is underway, with the goal of attracting institutional investors seeking impact and uncorrelated yield. The leading concept for Fund III is a semi-liquid, evergreen fund designed to scale into a vehicle exceeding $500 million.
Mad Capital's commitment to regenerative agriculture extends beyond investment. The company also provides US farmers with loans to transition to regenerative-organic farming practices, addressing a historical gap in traditional lending. Given Mad Capital's $0% loss rate as a company thus far, investor confidence in the firm has increased due to their scale and track record.
The growing interest in investment opportunities in the regenerative agriculture space is not limited to Mad Capital. Family offices, foundations, and individuals are increasingly recognising the potential of this sector. As Mad Capital continues to scale a high-performing portfolio for 4.5 years and beyond, it is clear that the company is making a significant impact in the world of agriculture and beyond.
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