debt

US farmers closed out 2021 in a healthy debt position but more borrowing, drought conditions and higher interest rates could put pressure on income this year.

Managing director Matthew Swanson says most private debt funds are not active in food and ag.

Investment staff highlighted the Cargill spin-out’s Farm Credit System relationship as the competitive advantage of a strategy targeting 13% net IRR through provision of US agribusinesses loans.

Data products manager Allison Kopf says the company has already helped facilitate about $250m in expansion and project finance capital through a process it plans to accelerate over the next 18 months.

Non-bank lender Thera Capital Management has secured two-thirds of its commitments from outside Australia, gaining traction among investors thanks to ag’s defensive characteristics and ESG themes.

The Teachers Retirement System of Illinois is among the investors in a junior debt-focused vehicle, which a source tells Agri Investor is seeking $500m.

Head of ESG for global fixed-income Stephen Liberatore says there would be more interest among public market investors if they knew what was available to them in agtech.

The UN body granted its firm direct loan to Nigerian impact enterprise Babban Gona, which has since received commitments worth $23m from other senior debt lenders.

The firm’s latest credit fund benefitted from renewed interest among large LPs and Wall Street banks beating a retreat after their post-GFC ag debt binge.

The North Carolina-headquartered firm surpassed its hard-cap to close its distinct credit vehicle at $325m and took approximately $115m in co-investments.