Singapore GP nets $358m for salmon farm fund

8F Aquaculture Fund received commitments from sovereign wealth funds, insurance companies, pension funds, and family offices, across Europe, Asia, the Middle East, Latin America and the US. Additional contributions came from 8F management and US-based strategic supplier AquaMaof Aquaculture Technologies. 

"Our inaugural fund has met with very strong investor demand that considerably exceeded our initial final closing amount," Stephane Farouze, chairman and founder of 8F, said in a statement. "We are proud of this milestone for 8F and delighted by the reception our fund has received from such a highly respected group of investors."

The fund aims to develop a land-based fish farming business called Pure Salmon that will be the largest producer of Atlantic salmon globally. Initial activity has focused on the acquisition and development of aquaculture facilities in Poland, Japan, France and the US. Future plans include the development of new sites in China, Southeast Asia, and Africa. 

Pure Salmon has established assets representing about 40,000 tons of salmon per year to date and is targeting a capacity of 260,000 tons. The company claims its water recirculation technology allows for the growing of fish in the "healthiest living conditions possible" and in a way that closely replicates the positive qualities of a natural salmon habitat. 

The process is also said to benefit from significantly reduced costs versus traditional sea-cage farming. Products will be marketed as free of antibiotics, hormones, pesticides, and micro-plastics. Pure Salmon is expected to handle quality assurance and brand management operations in-house, along with production, processing, and distribution.

8F, which also operates from bases in Hong Kong, the UK and Germany, is dedicated exclusively to achieving positive social and environmental impact through private equity investments in vertically integrated aquaculture production and processing facilities. Rising demand for higher-quality and safer foods, especially in Asia, has established aquaculture as a discrete category for PE investors in recent years. 

Previous deals in this space include a sizeable investment by Permira in Taiwanese aquatic feed producer Grobest and a venture round for Singaporean fish farm analysis technology supplier Umitron. Similarly themed impact investment activity recently saw Singapore's Circulate Capital raise $106 million for a fund aimed at reducing plastics pollution in ocean waters across South and Southeast Asia. 

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