Barings and farmland investor Homestead Capital USA LLC have closed a $300 million asset-based finance program aimed at expanding Homestead’s loan origination platform while broadening Barings’ exposure to agricultural credit. 

San Francisco-based Homestead manages $1.6 billion in equity and credit assets for institutional investors, including pension plans, endowments, foundations and insurance companies. The firm finances and manages diversified portfolios of farmland nationwide, providing capital solutions to borrowers ranging from small and mid-sized farmers to vertically integrated agribusinesses. 

“We have been building our credit capability for years and want to be the gold standard for agriculture investing,” said Gabe Santos, Co-Founder and Co-CEO of Homestead. 

“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,” added Dan Little, Co-Founder and Co-CEO. 

The forward flow arrangement will expand Homestead’s lending footprint across the Delta, Midwest, Mountain West, Pacific, Pacific Northwest, Southeast and Southwest, targeting staple and specialty row crops as well as permanent plantings. 

“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,” said Burak Cetin, Managing Director for the Asset-Based Finance team at Barings. 

Barings was advised by Holland & Knight LLP. Homestead was advised by Paul Hastings LLP.