Farmland Investor Homestead Capital, Gathers $400 million

Laura Cooper reported yesterday at The Wall Street Journal Online that, “Homestead Capital, which invests in U.S. farmland, said it closed fundraising for its second vehicle, gathering $400 million.

“Homestead Capital USA Farmland Fund II LP hit its hard cap and surpassed an original target of $350 million, according to a news release.

“The new fund is more than double the size of the firm’s debut vehicle, Homestead Capital USA Farmland Fund I LP, which closed in July 2015 with $173 million.”

The Journal article indicated that, “Fundraising for the firm’s second vehicle began in late spring, said Gabe Santos, a co-founder and portfolio manager for San Francisco-based Homestead. Mr. Santos said many of Fund II’s backers were returning investors from Fund I, adding that new Fund II investors had been talking to the firm since before the firm’s debut fund was raised.”

Ms. Cooper added that, “The firm, which owns a portfolio of farms in 11 states which produce 16 different crops, said it will continue to invest in farmland throughout the Mountain West, Pacific, Midwest and Delta regions.

“Homestead Capital invests in farms that grow such crops as cotton, rice, wheat, soybeans, apples, tree nuts and citrus as well as both table and wine grapes. The firm buys farms and helps with capital improvements such as irrigation and storage facilities as well as farm management and locating a local operator using the latest technologies or farm management practices, Mr. Santos said.”

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