Smallholder Agriculture | October 25, 2022

KKR Global Impact takes a $300 million stake in seed platform Advanta Enterprises

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, October 25 — KKR Global Impact, the $1.3 billion impact fund of private equity giant KKR, has acquired a 13.3% of Advanta Enterprises in a deal that values the company at nearly $2.3 billion. Advanta is the crop protection and hybrid seeds subsidiary of Indian sustainable farming company UPL, which sold the stake to KKR for $300 million.

With smallholder farmers around the world facing harsher climates, Advanta makes seeds tailored to particular geographies, such as tropical and subtropical corn. Advanta works across more than 40 crops – including grain sorghum, sunflower, canola, rice and corn – in 84 countries.

KKR’s Gaurav Trehan said the investment in Advanta comes “at a time when food security has grown in importance amidst geopolitical tensions and climate change.” Advanta will continue to operate as a standalone platform. 

Ag investing

Separately, another unit of UPL, Sustainable Agri Solutions, sold a 9.1% stake for $200 million to Brookfield Global Transition Fund, TPG and a unit of UAE-based sovereign wealth fund Abu Dhabi Investment Authority. The deal values Sustainable Agri Solutions, which operates crop protection and farm nutrition businesses for smallholder farmers in India, at $2.2 billion.

Brookfield’s Nawal Saini said it will work with UPL “to accelerate their sustainability and decarbonization goals.”