Barings, one of the world’s leading investment managers, and leading U.S. farmland investor Homestead Capital USA LLC (Homestead), today announced the closing of a $300 million asset-based finance program to expand Homestead’s loan origination in key regions, while broadening Barings’ access to investment opportunities in the agricultural credit market.
San Francisco-based Homestead manages $1.6 billion in equity and credit assets for clients globally, including pension plans, endowments, foundations, insurance companies, and family offices. Homestead acquires, finances, and manages diversified portfolios of high-quality farmland assets. With operations across much of the U.S., Homestead’s credit strategy provides capital solutions to borrowers ranging from small and mid-sized farmers to large, vertically integrated agribusinesses. Homestead was established in 2012 by Gabe Santos and Dan Little, Co-Founders and Co-CEOs.
Santos said, “We have been building our credit capability for years and want to be the gold standard for agriculture investing.”
Little added, “Our partnership with Barings elevates our loan origination efforts and provides new opportunities for investors to participate in agriculture, an asset class that offers compelling risk-adjusted and uncorrelated returns in a variety of market environments.”
Through this forward flow arrangement with Barings, Homestead will expand its loan portfolio and national footprint within the $624.7 billion U.S. agricultural credit market.1 New coverage areas will include the Delta, Midwest, Mountain West, Pacific, Pacific Northwest, Southeast, and Southwest, with anticipated lending to a mix of commodity markets, including staple row crops, specialty row crops, and permanent plantings.
“We’re excited to partner with Homestead and its experienced management team to increase the platform’s origination capacity and expand capital access for farmers,” said Burak Cetin, Managing Director for the Asset-Based Finance (ABF) team at Barings. “Through this partnership, we are expanding Barings’ asset-based origination network into the U.S. agricultural market and offering our clients access to differentiated agricultural credit opportunities.”
Barings’ ABF investment platform seeks to develop long-term origination partnerships that provide distinct and durable access to differentiated asset-based investment opportunities for its investors.
Barings was advised by Holland & Knight LLP.
Homestead was advised by Paul Hastings LLP.
