Homestead Hits Hard Cap
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Homestead Hits Hard Cap

homestead-nf4Homestead Capital USA, a private equity firm investing in operating farmland in the United States, has held a final close of its second fund, Homestead Capital USA Farmland Fund II, LP, at its hard cap of $400 million. The fund had an original target of $350 million. Homestead did not use a placement agent for this fundraise. Homestead’s first fund closed in June 2015 with $173 million in capital commitments.

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Limited partners in the new fund include pension funds, endowments, foundations, funds of funds, high net worth individuals and insurance companies. “We are very pleased with the gabe-santos-nf1support we received from returning investors and the quality of new limited partners that we were able to attract to Fund II,” said Gabe Santos, a co-founder and portfolio manager of Homestead.

According to Homestead, demand for Fund II reflected investor interest in farmland as an asset class and the opportunity it offers to produce strong risk-adjusted returns, provide portfolio diversification, and provide a hedge against inflation.

Homestead’s current portfolio includes farms across 11 states that produce 16 different crops and the firm will continue its focus on making row and permanent crop
farmland investments in the Mountain West, Pacific, Midwest and Delta regions.

dan-little-nf1“With the capital from Fund II, we plan to continue to execute on our value-add investment strategy. Because of our local presence and broad agricultural network, we are seeing many attractive investment opportunities in our targeted regions,” said Dan Little, a co-founder and portfolio manager of Homestead.

Legal services for this fundraise were provide to Homestead by Kirkland & Ellis. The Kirkland team was led by investment funds partners Matthew Dickman and Kelly Ryan. The team also included tax partners Steven Butler and Bruce Gelman; employee benefits partner Laura Bader; and investment funds partner Kevin Bettsteller and associates Lily Anne Rasel and Caleb Hanlon. Since the beginning of 2015, Kirkland has advised nearly 300 private investment fund sponsors, raising more than 400 funds representing in excess of $315 billion of capital commitments (www.kirkland.com).

Homestead Capital has offices in San Francisco, CA and Council Bluffs, IA (www.homesteadcapital.com).

© 2016 Private Equity Professional
November 17, 2016

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