Homestead Capital, a US farmland fund management firm, is set to announce the final close of its first fund at the end of May. The fund is targeting $225 million and has already raised $123 million from 19 investors, according to SEC filings.
Homestead Capital USA Farmland Fund I is scheduled to close on 29 May which would be its fourth and final close, Agri Investor learned.
The fund will invest in buy-and-lease farmland assets across the Mountain West, Delta, Midwest and Pacific regions of the US.
The fund has a diversified investor base including several public pension plans, endowments and foundations, funds of funds and high net worth individuals. “As we approach our final close on May 29, we reflect on the good fortune we’ve had to meet with many leading institutional investors and consultants across the real assets and natural resources sectors,” Gabe Santos, managing partner of Homestead Capital, told Agri Investor.
Homestead uses up to six different lease types in its buy-and-lease strategy: cash rent, flex lease, net share, fixed bushel, crop share and custom arrangements with tenant farmers. Its investment team includes professionals with agricultural and financial experience in investing, farm management, farm acquisition, portfolio construction and risk management, according to its website.