Key Takeaways
- • Homestead Capital announced the first close of its inaugural agriculture private credit fund, anchored by a $150m (£110.6m) commitment from the private credit investment team of a large US state pension system.
- • The fund targets a total raise of $350m in commitments with a hard cap of $500m.
- • The commingled strategy originates senior secured loans collateralised by US farmland and other agricultural assets, aiming at financing needs underserved by traditional agricultural lenders.
- • Homestead, based in San Francisco and founded in 2012, has deployed more than $1.8bn across US farmland and agricultural assets.
- • Earlier this year, Homestead and Barings formed a partnership with a $300m forward-flow agreement to expand its agricultural lending platform.
Summary
Farmland investor Homestead Capital has announced the first close of its inaugural agriculture private credit fund, according to the firm's announcement reported by Alternative Credit Investor. The close was anchored by a $150m (£110.6m) commitment from the private credit investment team of a large US state pension system. Homestead is targeting a total raise of $350m in commitments from investment partners, with a hard cap of $500m.
According to Homestead, the state pension scheme viewed the strategy "as a complementary asset-backed lending diversifier within its private credit portfolio." The commingled private credit strategy focuses on originating senior secured loans collateralised by farmland and other agricultural assets to agricultural borrowers across the United States. The fund aims to address financing needs that are often underserved by traditional agricultural lenders.
Dan Little, co-founder and co-chief executive of Homestead Capital, said the commitments "reflect increasing institutional demand for differentiated private credit strategies backed by real assets," adding that agriculture continues to face a structural shortage of flexible lending capital despite strong borrower demand and resilient collateral values. Justin Burns, head of credit at Homestead Capital, said the first close enables the firm to capitalise on a robust pipeline of lending opportunities.
Earlier this year, Homestead together with Barings formed a partnership featuring a $300m forward-flow agreement to provide additional capital for Homestead's expanding agricultural lending platform. Since its inception in 2012, the San Francisco-based firm has deployed more than $1.8bn across a portfolio of US farmland and agricultural assets.
According to Homestead, the state pension scheme viewed the strategy "as a complementary asset-backed lending diversifier within its private credit portfolio." The commingled private credit strategy focuses on originating senior secured loans collateralised by farmland and other agricultural assets to agricultural borrowers across the United States. The fund aims to address financing needs that are often underserved by traditional agricultural lenders.
Dan Little, co-founder and co-chief executive of Homestead Capital, said the commitments "reflect increasing institutional demand for differentiated private credit strategies backed by real assets," adding that agriculture continues to face a structural shortage of flexible lending capital despite strong borrower demand and resilient collateral values. Justin Burns, head of credit at Homestead Capital, said the first close enables the firm to capitalise on a robust pipeline of lending opportunities.
Earlier this year, Homestead together with Barings formed a partnership featuring a $300m forward-flow agreement to provide additional capital for Homestead's expanding agricultural lending platform. Since its inception in 2012, the San Francisco-based firm has deployed more than $1.8bn across a portfolio of US farmland and agricultural assets.
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