Homestead Capital USA LLC has raised $400 million for its second fund, beating its original $350 million target. The limited partners of Homestead Capital USA Farmland Fund II included public pension funds, endowments, foundations, insurance companies and fund-of-funds. Homestead focuses on making farmland investments in the Mountain West, Pacific, Midwest and Delta regions. No placement agent was used.
SAN FRANCISCO–(BUSINESS WIRE)–Homestead Capital USA LLC (“Homestead”), 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, L.P. (“Fund II”), at its hard cap of $400 million in limited partner capital commitments, surpassing an original fundraising target of $350 million and more than doubling the size of its debut fund.
“We are very pleased with the support we received from returning investors and the quality of new limited partners that we were able to attract to Fund II. Our investor base spans a broad range of partners including public pension funds, endowments, foundations, insurance companies and fund-of-funds,” said Gabe Santos, a co-founder and portfolio manager of Homestead.
Dan Little, also a co-founder and portfolio manager of Homestead, added, “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.”
Like its predecessor fund Homestead Capital USA Farmland Fund I, L.P., which owns a portfolio of farms across 11 states producing 16 different crops, Homestead will continue its focus on making row and permanent crop farmland investments in the Mountain West, Pacific, Midwest and Delta regions.
Homestead applies a bottom-up approach to its investment decisions and management by identifying opportunities to create value and is committed to preserving the value of farmland over the long term by adhering to sustainable farm management practices. Homestead also applies a top-down overlay to portfolio construction and risk management in an effort to ensure proper diversification and an appropriate risk and reward profile.
Homestead was represented by Kirkland & Ellis LLP as fund counsel and did not use a placement agent.
ABOUT HOMESTEAD CAPITAL
Homestead Capital is a private equity firm investing in operating farmland across the Mountain West, Pacific, Midwest and Delta regions of the United States. With offices in Council Bluffs, Iowa and San Francisco, California, Homestead has a vertically integrated investment platform led by a team of professionals with deep agricultural and financial experience in investing, farm management, farm acquisition, portfolio construction and risk management. For more information, please visit the company website at http://www.homesteadcapital.com/.