Homestead secures ‘significant commitments’ at first close of agri private credit fund
Farmland investor Homestead Capital has 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.
Homestead, which is targeting a total raise of $350m in commitments from investment partners with a hard cap of $500m, said the state pension scheme viewed the strategy “as a complementary asset-backed lending diversifier within its private credit portfolio”.
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The commingled private credit strategy is focused on originating senior secured loans, collateralised by farmland and other agricultural assets, to agricultural borrowers across the US.
In doing so, the fund aims to address financing needs that are often underserved by traditional agricultural lenders, according to Homestead.
“These significant commitments reflect increasing institutional demand for differentiated private credit strategies backed by real assets,” said Dan Little, co-founder and co-chief executive of Homestead Capital. “Agriculture continues to face a structural shortage of flexible lending capital, despite strong borrower demand and resilient collateral values.”
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“We are grateful for the confidence our investors have placed in our team and strategy,” Justin Burns, head of credit at Homestead Capital, added. “This first close enables us to capitalise on a robust pipeline of lending opportunities while continuing to build long-term partnerships with institutional investors seeking exposure to a differentiated segment of private credit.”
Since its inception in 2012, San Francisco-based Homestead has deployed more than $1.8bn across a portfolio of US farmland and agricultural assets.
