Minneapolis-based alternative asset manager, Proterra Investment Partners LP, has achieved a significant milestone with the closing of its second private credit fund, Proterra Credit Fund 2 LP (“Fund 2”). The fund surpassed its initial $400 million target, closing above its $500 million hard cap. The achievement was fueled by strong interest and commitments from a diverse group of investors, including state, local, and corporate pension funds, insurers, family offices, RIA clients, and Proterra professionals. Fund 2’s impressive size, which is more than double that of its predecessor, reflects the continued growth and success of Proterra’s food and beverage credit platform, established in 2019.
Proterra’s credit funds are dedicated to providing financing to North American middle-market food and beverage companies, with a specific focus on leading and arranging unitranche loans in support of sponsor-backed acquisitions. Since the launch of this investment strategy, Proterra has made over 20 investments, capitalizing on the transformative trends shaping the food and beverage industry. These trends include the increased consumer demand for sustainably grown, clean-label, and “better for you” products. By tapping into these emerging opportunities, Proterra has been able to offer its investors a unique chance to achieve attractive, risk-adjusted returns within a growing and dynamic sector.
Rich Gammill, Proterra’s Managing Partner, expressed gratitude for the support received from existing and new limited partners, which has enabled the firm’s expansion of the food and beverage lending platform. Gammill highlighted the fact that consumers are increasingly seeking innovative, sustainably produced, organic, and clean-label food products. Many of the companies catering to this demand are often overlooked by larger, generalist lenders. Proterra, with its expertise in this niche sector, is strategically positioned to bridge this gap, benefiting investors and the promising food and beverage companies it supports.
Briarcliffe Credit Partners played a crucial role in this success story by serving as the sole placement agent for Proterra’s Fund 2. As a leading placement agency dedicated exclusively to private credit, Briarcliffe’s contribution was instrumental in ensuring the fundraiser achieved its objectives. The firm’s Founder & CEO, Jess Larsen, noted that in the current market environment, investors are becoming more selective and seeking access to top-tier, differentiated private credit strategies. Proterra’s credit platform presented an excellent opportunity to meet this demand.
Proterra Investment Partners is a global alternative asset manager with an impressive $3.7 billion in assets under management (AUM). The firm is led by a team with diverse skills and experiences, boasting more than a decade of working together. Originally spun out of Black River Asset Management, a wholly owned, independently managed subsidiary of Cargill, a global leader in agriculture, food, beverage, finance, and industry, Proterra has continued to grow and thrive. The firm’s credit fund management has earned it a top-quartile ESG transparency score, further establishing its reputation in the industry.
Headquartered in New York, Briarcliffe Credit Partners is a specialized placement agency exclusively dedicated to private credit. The firm seeks to capitalize on the increasing complexity and growth of the $1.5 trillion private credit market by providing fundraising services to investment firms focused on niche private credit strategies, with fund sizes ranging from $500 million to $2 billion. In a short period, just 18 months after its founding, Briarcliffe received industry recognition through its selection as the Private Debt Investor 2022 Advisory & Placement Agent of the Year (Americas).
Proterra Investment Partners LP’s successful closing of Proterra Credit Fund 2 LP marks a significant achievement, demonstrating the growing interest in alternative asset investing within the food and beverage industry. With a diverse group of committed investors and an established track record of success, Proterra is positioned to continue its growth and make a positive impact on the sector it serves. Supported by the expertise of Briarcliffe Credit Partners, the future looks promising for Proterra and its stakeholders as they navigate the dynamic landscape of natural resources investing.
Image provided by Briarcliffe Credit Partners