Investment of $250 Million by Carlyle in FarmOp Capital to Enhance Farmer Lending Services
Carlyle, a global investment firm, has announced a $250 million partnership with FarmOp Capital, a leading provider of operating loans to farmers. The collaboration aims to enhance the provision of flexible financing for independent row crop farmers in the U.S.
In a statement, Keir Renick, CEO of FarmOp Capital, expressed excitement about the partnership, stating that it represents growth, stability, and longevity in the industry for FarmOp Capital and its customers.
Under the agreement, Carlyle will purchase newly issued loans from FarmOp, allowing FarmOp to expand its loan origination capacity. This partnership significantly enhances the provision of flexible financing for independent row crop farmers by injecting $250 million into FarmOp’s innovative production-based lending model.
The partnership is expected to enable FarmOp Capital to continue providing operating loans to farmers and innovate new products and offerings to support the agriculture industry. According to Akhil Bansal, Head of Asset-Backed Finance at Carlyle, the investment reflects their continued commitment to scaling asset-backed finance across specialized sectors.
Loans are secured by insured crops and governed through milestone-based draw schedules with strict oversight, providing a controlled yet flexible credit environment that aligns with farmers’ operating realities and reduces risk. This innovative lending structure is a key factor in extending financing to more farmers, including multi-generation and beginning farmers facing conventional funding barriers.
The partnership also addresses the evolving farm ownership landscape, helping farmers who operate large acreages but own less land to obtain necessary operating funds. Moreover, the collaboration allows FarmOp to develop new credit products, such as those tailored for pecan growers, reflecting proactive adaptation to diverse agricultural needs.
By focusing on asset-light financing, the partnership supports changing farm demographics and helps improve access to financing for independent row crop farmers in the U.S. Gregory Gudis, a Principal on Carlyle’s Asset-Backed Finance team, emphasized the importance of working capital for sustaining independent U.S. farmers and the partnership’s role in expanding access to flexible financing for growers who have historically lacked suitable credit options.
Paul Hastings served as the legal advisor to Carlyle in connection with the transaction, while Mayer Brown advised FarmOp Capital. The partnership between Carlyle and FarmOp Capital demonstrates Carlyle’s support for innovative platforms that bring technology, credit discipline, and farmer-first innovation to the agricultural finance sector.
Overall, this collaboration revolutionizes farm lending by bridging critical financing gaps with scalable, flexible, and risk-managed solutions aligned to modern U.S. farming operations.
This partnership is another example of Carlyle's continued commitment to investing in asset-backed finance across various sectors. Akhil Bansal highlighted Carlyle's structuring expertise and industry insight as key factors in supporting innovative platforms with high-quality, collateral-backed credit.
In conclusion, the partnership between Carlyle and FarmOp Capital is expected to drive growth and innovation in the agricultural finance space, providing much-needed support to independent row crop farmers in the U.S.
- The partnership between Carlyle and FarmOp Capital is a significant step in the business sector, as it injects $250 million into FarmOp’s innovative production-based lending model, enhancing the provision of flexible financing for independent row crop farmers.
- Through this collaboration, FarmOp Capital can continue investing in the agriculture industry by providing operating loans to farmers and developing new credit products tailored to diverse agricultural needs, such as those for pecan growers.
