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Integrated Ag targets $250m for distressed farmland – exclusive

Integrated Ag will invest in distressed and underutilised farm properties and underlying farm businesses in states like Arizona and Nevada.

Integrated Ag is targeting $250 million for its debut private equity fund to invest in distressed and underutilised farm properties and underlying farm businesses in the US Southwest, Agri Investor has learned. It will employ an own-and-operate model.

A first close is expected by the end of 2015 and a final close by the end of 2016.

As of May 2015 it had raised $17.5 million from 17 investors, according to a Securities and Exchange Commission filing.

The 3-year-old firm previously raised capital on a deal-by-deal basis.

Integrated Ag is expected to deploy Fund I within 12 to 24 months of its final close, likely purchasing multiple assets at once in states like Arizona and Nevada, according to a source familiar with the fund. The firm is thought to have a pipeline of about $200 million-worth of farmland assets in various stages of due diligence.

To date, Arizona-based Integrated Ag has invested in five farms in Arizona: two farms totalling 3,300 acres in Yuma County; two farms totalling 1,000 acres in Maricopa County; and one 1,900-acre farm in Pinal County.

Earlier this month, Integrated Ag launched Integrated Ag Labs to innovate and test new ag-related technologies. The programme is funded by the firm’s farm operating companies.

The firm was founded by Patrick Horseman and Adam McNicol. Horseman is also the founder and managing partner of broker dealer Blue Sand Securities, a partner and co-founder of event-driven hedge fund Merion Investment Management and a partner at events company Context Summits.  McNicol was previously founding partner of hedge fund business Fintan Partners.