The firm is raising $100 million for its inaugural FarmCap Private Credit Agricultural Mortgage Fund (Diversified) to lend to Australia’s thriving agri sector, and has $40 million worth of deals under offer
The Agricultural sector is predicted to grow from $82 billion in farm production to $100 billion by 2030.
Potential Investor returns
Potential investors have been told to think of 9.5 per cent to 11.5 per cent in annual return – or 5 to 7 per cent over the cash rate – from a portfolio that will include first and second-mortgage loans.
How the Fund will earn a living
The Fund Manager will charge base fees of 1.75 per cent, and a 15 per cent performance fee after a minimum return of 4 per cent over the bank bill swap rate.
The Ideal Farmer Client
The typical borrower is a farmer seeking up to $15 million, to be paid back over six months to 24 months, to fund broadacre, irrigated cropping, livestock and horticulture needs.
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