Key Takeaways
- Mad Capital has closed its Perennial Fund II at $78.4 million, more than tripling its initial $25 million target.
- The oversubscribed round represents a sevenfold increase over Fund I and raises the firm’s assets under management to $100 million.
- The fund provides flexible loans to U.S. farmers adopting regenerative organic practices, supporting soil health, carbon sequestration, and long-term yields.
- Backers include Builders Vision, The Rockefeller Foundation, The Schmidt Family Foundation, Social Finance, Innovaciones Alumbra, and others.
- With Fund II, Mad Capital aims to finance millions of acres of farmland and accelerate the transition toward regenerative food systems.
Mad Capital Fund II Overview
Boulder, Colorado-based Mad Capital announced the close of its Perennial Fund II, securing $78.4 million to support regenerative agriculture in the U.S. The fund surpassed its original $25 million target and brings the firm’s assets under management to $100 million.
Launched in 2023, Fund II quickly upsized twice, drawing commitments from more than 100 investors. Supporters include institutional backers and philanthropic foundations such as Builders Vision, The Rockefeller Foundation, The Schmidt Family Foundation, Social Finance, Innovaciones Alumbra, the New Mexico Finance Authority, Bedari Collective, and the McConnell Foundation.
Mad Capital Mission and Approach
Mad Capital provides senior secured loans for working capital, infrastructure, real estate, and equipment, enabling farmers to transition to regenerative organic practices. These methods aim to improve soil health, sequester carbon, and strengthen yields while helping operators manage the costs of certification transitions.
Brandon Welch, co-founder of Mad Capital, said: “U.S. farmers are going through a tough period with low crop prices and high interest rates. Many are thinking of alternative approaches to their operation, so naturally, they are exploring new markets and soil health to improve their bottom line. Transitioning acres to organic row crop production or regenerative ranching has potent upside, but it takes financial resources and time to cross the chasm. That’s where Mad Capital can step in to provide loans that help operators bridge the J-curve until they increase their margins.”
Phil Taylor, co-founder of Mad Capital, added: “This is a bold reimagination of financing in nature’s image, empowering farmers to create farm ecosystems that are good for the Earth and good for humanity.”
Investor Perspective
Sara Balawajder, Director of Investments at Builders Vision, stated: “Mad Capital is playing an integral role in the transition to regenerative organic agriculture. Through their innovative and holistic approach, they are providing capital to farmers who have been overlooked and underserved by traditional capital markets, while their broader platform also offers technical assistance, market access, and a sense of community.”
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