Key Takeaways
- Barings and Homestead Capital closed a $300 million asset-based finance program
- Program aims to expand Homestead’s loan origination across key U.S. agricultural regions
- Homestead manages $1.6 billion in equity and credit farmland assets
- Partnership broadens Barings’ access to U.S. agricultural credit opportunities
- Expansion targets multiple commodity markets across the $624.7 billion U.S. ag credit sector
Barings and Homestead Capital Establish $300 Million Forward Flow Program
Barings and Homestead Capital USA LLC have announced the closing of a $300 million asset-based finance program designed to expand agricultural loan origination across the United States. The agreement enables Homestead to scale its credit strategy while providing Barings with expanded exposure to investment opportunities within the U.S. agricultural credit market.
Homestead, headquartered in San Francisco, manages approximately $1.6 billion in equity and credit assets for institutional investors, including pension plans, endowments, foundations, insurance companies, and family offices. The firm acquires, finances, and manages diversified portfolios of farmland assets nationwide.
Through the forward flow arrangement, Homestead plans to broaden its national footprint across the $624.7 billion U.S. agricultural credit market. Target regions include the Delta, Midwest, Mountain West, Pacific, Pacific Northwest, Southeast, and Southwest.
Homestead Capital Expands Credit Strategy Across Key Agricultural Regions
Focus on Diverse Commodity Exposure
Homestead’s credit platform provides capital solutions to borrowers ranging from small and mid-sized farmers to large, vertically integrated agribusinesses. The expanded lending strategy is expected to support staple row crops, specialty row crops, and permanent plantings.
Gabe Santos, Co-Founder and Co-CEO of Homestead, stated: “We have been building our credit capability for years and want to be the gold standard for agriculture investing.”
Dan Little, Co-Founder and Co-CEO, added: “Our partnership with Barings elevates our loan origination efforts and provides new opportunities for investors to participate in agriculture, an asset class that offers compelling risk-adjusted and uncorrelated returns in a variety of market environments.”
Barings Expands Asset-Based Finance Platform into Agricultural Credit
Enhancing Origination Capacity and Investor Access
Barings’ Asset-Based Finance (ABF) team will utilize the partnership to expand its origination network into U.S. agriculture. According to the companies, the collaboration strengthens capital access for farmers while offering investors differentiated credit exposure.
Burak Cetin, Managing Director for the ABF team at Barings, commented: “We’re excited to partner with Homestead and its experienced management team to increase the platform’s origination capacity and expand capital access for farmers. Through this partnership, we are expanding Barings’ asset-based origination network into the U.S. agricultural market and offering our clients access to differentiated agricultural credit opportunities.”
Barings stated that its ABF platform focuses on building long-term origination partnerships designed to provide durable access to asset-based investment opportunities. Through this agreement, both firms aim to scale lending activity and strengthen participation in the U.S. agricultural credit sector.
