What does it take to build a private equity firm from the ground up in a sector as complex and competitive as agribusiness? That’s the story we’re diving into today with my longtime friend, Sebastian Popik. We’ve known each other for years. I even helped him raise his very first fund, and it’s been great to watch the path he’s carved since then.
Sebastian is the founder of Aqua Capital, which he started back in 2009 with a clear vision: invest in what you know, focus on adding real operational value, and stick to principles that stand the test of time. His roots run deep in agriculture, and that background has shaped how Aqua became a leading private equity firm in food and agribusiness across Latin America and beyond.
In our conversation, he shares not just the wins, but also the hard lessons from growing up across Argentina, Brazil, and the U.S., to a health scare that shifted his career, to the realities of building and managing teams. We also talk about how AI is starting to change value creation, why Latin America continues to draw investors despite the ups and downs, and how fundraising itself is evolving in today’s private markets.
Episode Highlights:
[01:30] We hear how Aqua Capital was founded in 2009 with principles of being a principal investor, operational value-add, and early ESG focus.
[02:53] He details Aqua’s sector expertise in agriculture and food, noting how definitions have evolved.
[03:33] Sebastian shares his agronomist family background across Argentina, Brazil, and the U.S.
[03:50] Childhood moves between Argentina, Brazil, and schooling in St. Louis shaped his early experiences.
[04:56] Funny English miscommunications and culture shock in a large U.S. public school are described.
[07:08] We learn about his decision to defer Berkeley to study in Buenos Aires, which became a strong educational experience.
[08:04] He highlights the high caliber of his Argentine university classmates, with several going on to Harvard.
[08:33] Weekend farm visits with his father helped agriculture naturally become his focus.
[09:40] Dinner table conversations with his father provided business knowledge despite formal economics/public policy training.
[10:29] His unconventional entry into private equity came through Booz Allen, a healthcare automation startup, and a cancer diagnosis that shifted his path.
[12:12] Sebastian admits he had never been a principal investor before but learned from LP and GP feedback.
[12:46] Lessons from overcoming a pro-entrepreneur bias and the difficulty of firing friends became pivotal.
[14:53] Jack Welch’s hiring philosophy is cited, noting even top leaders have only a 70% success rate.
[17:09] We hear about his systematic approach to evaluating businesses and identifying transformational opportunities.
[18:32] He distinguishes between growth through basics and true transformation such as shifting to subscription models.
[19:22] An example is given of transformational R&D thinking.
[21:11] Sebastian describes his structured AI self-learning practice of three hours per week.
[22:20] He identifies commercial excellence as the key AI application area across his portfolio.
[23:08] We learn how AI reduces sales quote turnaround from days to minutes.
[24:44] Early AI results show technical salespeople prescribing better farmer solutions.
[25:32] He emphasizes pragmatic, bottom-up AI projects with quick ROI, especially under Brazil’s 15% interest rates.
[27:45] The discussion turns to Latin America’s commodity and political cycles as key investment drivers.
[29:17] He explains how fiscally prudent governments enable stronger economic responses.
[30:06] Growth equity is identified as the most successful LATAM private equity strategy.
[30:51] We hear why buy-and-build strategies have struggled in LATAM over the past decade.
[32:41] Expansion into North America is explained as driven by sector transferability and diversification.
[33:50] He describes the permanent crops platform as a way to diversify risk and build integration.
[34:59] A preference for brownfield over greenfield opportunities in permanent crops is emphasized.
[35:31] Lessons emerge on biological systems not scaling exponentially.
[35:55] A case study of tilapia aquaculture shows how rapid scaling diluted productivity.
[37:19] Permanent crops are compared to bonds in terms of cash flow characteristics.
[38:12] He reflects on shifting from long holds toward shorter holding periods given uncertainty.
[39:31] We hear how high interest rates have broken traditional cash cycles.
[40:17] Creating value in shorter holds works better with leverage in North America.
[41:41] An opportunistic exit example in health and wellness is shared.
[43:03] Most exits require intensive work and senior-level attention.
[43:41] He describes helping buyers through post-acquisition planning support.
[44:01] IRR is argued to be more important than MOIC today, with DPI as the most critical metric.
[46:49] He predicts more opportunity-driven structures but expects traditional blind pools to remain anchors.
[47:55] LPs are concentrating relationships while seeking direct asset exposure and fee compression.
[50:19] The conversation highlights the continued role of sector-focused GPs with deep expertise.
[51:01] We get a glimpse of his skiing, kite surfing, and winter activities.
[51:51] He shares his fitness routine at 53, inspired by Peter Attia’s “Outlive.”
[52:51] Meditation practice and philosophy reading have become meaningful spiritual practices.
[53:11] We learn about his conversion to Judaism and reading of the Tanakh.
[54:19] He highlights building a culture of constructive pushback and adoption of technology.
[55:00] Recommended books include Who? and The Power Score for organizational health.
[56:08] Technology adoption and climate-focused solutions are identified as the biggest opportunity.
[57:29] Risks such as AI speed, climate change, and political instability are outlined.
[59:30] He notes opportunities in undiversified correlation in lower mid-market agriculture.
[59:53] We wrap up recognizing agriculture as a vital sector.
Resources & Links Related to this Episode
- Aqua Capital
- Sebastian Popik - LinkedIn
- Outlive: The Science and Art of Longevity
- Who
- Power Score: Your Formula for Leadership Success
- Antifragile: Things That Gain from Disorder
- TANAKH: The Holy Scriptures
