Warakirri Asset Management, a prominent agricultural investor, has launched a new dairy-focused strategy with an ambitious fundraising target of A$500 million (approximately $311 million or €299 million). This move marks a new chapter for Warakirri as it transitions away from its management of Aurora Dairies, a company it has overseen for Canadian pension fund PSP Investments since 2019.
The new strategy will be led by Ben James, who has extensive experience in dairy operations, including his time as CEO of Warakirri Dairies, which laid the groundwork for Aurora Dairies. The aim of the strategy is to deliver a risk-adjusted return of over 10% per year, leveraging the team’s previous success with Aurora, where it helped grow the business significantly—from 11 farms to over 50, and from 8,000 cows to more than 50,000, among other metrics. James will continue as CEO of Aurora Dairies during the transition period, after which he will fully focus on Warakirri’s new dairy strategy.
The new fund, which is yet to be named, intends to build a diverse portfolio of premium dairy assets, capitalizing on a growing milk supply deficit both domestically and internationally. Australia’s dairy industry has faced a dramatic decline in the number of dairy farms, falling by 80% between 1980 and 2023, with the remaining farms growing much larger. However, recent improvements in farm incomes have spurred new investments, and shipping issues along key trade routes have led to an increased demand for dairy from the Oceania region.
Joe Marassa, Warakirri’s head of managed funds platform, noted that the new strategy would begin once the fund receives A$150 million in initial capital commitments, followed by a portion of debt to help operationalize it. Warakirri has already begun discussions with investors, including domestic superannuation funds, global pension funds, and asset consultants, though the process of raising capital, particularly from offshore investors, may take time as many are unfamiliar with dairy as a strategy.
Warakirri has extensive experience in agricultural investments, with existing portfolios in cropping, including its Warakirri Cropping and Solterra platforms. Alongside the new dairy fund, Warakirri also has two other open-ended funds: its Farmland Fund and Diversified Agriculture Fund, which currently have portfolios valued at more than A$100 million and A$150 million, respectively.
Meanwhile, PSP Investments is shifting toward internalizing the management of its agricultural assets. This trend has included PSP’s move to internalize the management of Aurora Dairies as well as its Australian cropping companies. The transition of Aurora Dairies’ management from Warakirri to PSP’s internal team is scheduled for August 1, 2025. This decision is in line with PSP’s broader strategy to scale its global operations and increase internal management for greater accountability and efficiency.
As Warakirri moves forward with its new dairy fund, it looks to tap into growing demand for dairy products in both local and international markets, focusing on high-quality assets and developing a diversified portfolio with scale.
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