Opportunities in the agricultural sector
The South African agricultural sector is characterised by asset-rich, well-managed and profit-producing companies. The sector has, however, remained neglected by the investment community due to barriers to entry that makes investment in these entities difficult for any party outside of the agricultural arena.
Since 2004, PSG has pursued a strategy of investing in various unlisted agri companies and has enjoyed good returns on these investments. Following this strong growth, PSG has transferred its various agricultural investments to Zeder on 1 September 2006.
A private placement was conducted which afforded a selection of PSG’s clients, its business partners and financial institutions the opportunity to invest in the new company.
Zeder’s experience in the agricultural sector
Zeder believes that agricultural companies offer rewarding investment opportunities. Zeder continues to build on the close relationships that PSG established with the management of the companies in which it invests. Through this close association with business leaders in the agri environment we have gained substantial experience and knowledge of the opportunities and challenges that is characteristic of this sector.
Zeder invests predominantly in equity instruments, usually in the form of ordinary shares, but alternative investment instruments are also considered where an attractive investment return is expected.