In April 2022, PCP provided a EUR 75 million term loan to The Kingfish Company, a Dutch company which produces yellowtail kingfish in land-based fish farming facilities in Zeeland, Netherlands. The company produces an annual output of 1,500 tonnes and is led by a strong management team with deep experience of the industry. The company is listed at the Oslo Stock Exchange with the funder and management team remaining as significant owners.
Yellowtail kingfish is a niche species in Europe with rapid growth and demand for the company’s product has been strong. PCP’s loan will go towards financing the expansion of the current facility, increasing the output by 2,000 tonnes thus bringing annual production up to 3,500 tonnes.
Over the past years, PCP has spent a lot of time looking at the land-based aquaculture industry which we see as highly interesting. It’s a market driven by strong mega trends, such as increasing demand for more sustainable protein, something traditional aquaculture is struggling with. Land-based aquaculture solves many of the problems of traditional fish farming; less environmental impact, better animal welfare and lower volume of waste. Kingfish uses 100% renewable energy and run their facilities on sea water, not wasting precious fresh water, and all the waste is used as fertilizer.
PCP appreciates the experienced management team and that the company has successfully produced commercial fish in their facility for more than three years. The new facility builds on the blueprint and technology of the existing one, hence considerably reducing the construction risk. Further, sustainability is at the very centre of Kingfish’s operations, aligning well with PCP’s investment philosophy. To further incentivise the company, the interest margin will over time depend on certain ESG linked KPI’s.
April, 2022