Acumen Resilient Agriculture Fund II, LP
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
The Acumen Resilient Agriculture Fund II (ARAF II) is the successor fund of ARAF I, where FMO invested USD 7.5mln in 2020, and is a private equity fund that seeks to continue the strategy as implemented by ARAF I: targeting high-growth agribusinesses with a focus on climate resilience of smallholder farmers as well as food security in Africa. ARAF II aims to improve smallholder farmer resilience and adaptation to climate change, by investing in sustainable agribusiness models providing multiple services to these farmers at the same time – and in doing so, enhance smallholder farmer productivity, income, and livelihoods, as well as strengthen the resilience of the entire agriculture value chain.
What is our funding objective?
The Fund invests in a high-risk sector where commercial capital is scarce. FMO aims to be an anchor investor in ARAF II and catalyze other DFIs and impact investors.
Why do we want to fund this investment?
FMO intends to invest in ARAF II as the Fund’s strategy fits well with FMO’s strategy to (i) invest in businesses that improve climate resilience, (ii) to support smallholder farmers that are vulnerable to the effects of climate change. The investment contributes to SDG 8,10 and 13. Furthermore, the Fund has ambitious impact targets, anticipating 20 million lives to benefit from the activities of the ARAF II investees.
What is the Environmental and Social categorization rationale?
The ARAF II priority pipeline contains a limited number of higher-risk (category B or B+) opportunities. ARAF II has no mandate to onboard E&S category-A investments. Targeting early- and early-growth-stage companies mainly into Digital Platforms, Financial Service Provider Platforms and Aggregator Platforms, risk exposure will be limited. Following the EDFI harmonized E&S categorization for fund investments, ARAF II could turn out to be an E&S category-B or category-B+ fund, depending on the actual amount of B+ opportunities materialized in the final portfolio. Most likely, the initial years of the Fund 's life will show a cat-B profile, until >2 B+ assets are onboarded. FMO will apply a precautionary approach and manage the Fund as a B+ until a fully committed portfolio triggers a lower E&S risk categorization.
- Website customer/investment
- https://arafund.com/
- Region
- Africa
- Country
- Kenya
- Sector
- Agribusiness, Food & Forestry
- Publication date
- 5/23/2025
- Deadline for feedback
- 7/22/2025
- Total FMO financing
- USD 12.50 MLN
- Funding
- Building Prospects
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+