Key Takeaways
- Carlyle and FarmOp Capital announce $250 million forward-flow agreement to purchase newly issued farm operating loans
- Capital will expand FarmOp’s lending capacity for independent U.S. row crop farmers
- FarmOp Capital uses crop-insurance-backed models instead of traditional balance sheet underwriting
- Carlyle Asset-Backed Finance team led the transaction, marking continued expansion into ag finance
- Legal advisors included Paul Hastings LLP (Carlyle) and Mayer Brown LLP (FarmOp Capital)
FarmOp Capital and Carlyle Partner to Broaden Access to Agricultural Operating Loans
Global investment firm Carlyle (NASDAQ: CG) has signed a $250 million forward-flow agreement with FarmOp Capital, a U.S.-based agricultural finance provider. The agreement enables the investment firm to purchase newly issued farm operating loans and supports FarmOp Capital’s growth in lending to independent row crop farmers nationwide.
The partnership aims to increase capital availability for producers who face limited access to traditional lending. The funding will help the finance provider scale its origination capacity while developing new loan products tailored to agricultural operations.
Innovative Loan Model Backed by Crop Insurance
FarmOp Capital differentiates itself from traditional agricultural lenders by offering operating loans based on future crop production potential rather than borrower balance sheets. Its underwriting model is supported by crop insurance-backed data, allowing greater flexibility and scalability for producers.
“Partnering with Carlyle will allow FarmOp Capital to continue bringing operating loans to farmers but also innovate new products and offerings,” said Keir Renick, CEO of FarmOp Capital. He emphasized that the deal signals both growth and long-term stability for the company and its customers.
Expanding Focus on Agriculture Through Asset-Backed Finance
The transaction was led by Carlyle Asset-Backed Finance (Carlyle ABF), part of Carlyle’s Global Credit platform. Carlyle ABF specializes in private fixed income and asset-backed investments and has deployed approximately $8 billion since 2021, with $9 billion in assets under management as of March 31, 2025.
“This investment reflects our continued commitment to scaling asset-backed finance across specialized sectors,” said Akhil Bansal, Head of Asset-Backed Finance at Carlyle. He cited FarmOp Capital’s combination of technology, credit discipline, and farmer-first innovation as aligning with Carlyle’s strategy.
Gregory Gudis, Principal on Carlyle’s Asset-Backed Finance team, added, “We’re proud to expand access to flexible financing for growers who have historically lacked suitable credit options.”
Legal Advisors and Strategic Outlook For Carlyle & FarmOp Capital
Paul Hastings LLP served as legal advisor to Carlyle, while Mayer Brown LLP represented FarmOp Capital in the transaction.
With the new capital, FarmOp Capital expects to expand its reach across the U.S. agricultural sector and continue providing working capital solutions that help farmers increase operational flexibility and financial independence. The agreement marks a significant step in blending alternative finance structures with agricultural production systems, underscoring growing investor interest in the farm finance space.
