Carlyle forms strategic partnership with FarmOp Capital
Agreement provides FarmOp Capital with $250M to buy farm operating loans
Global investment firm Carlyle and farm lender FarmOp Capital are partnering to expand financing for U.S. farmers.
Carlyle has entered into a $250 million forward-flow agreement with FarmOp Capital to purchase newly issued farm operating loans, aiming to expand capital access for independent row crop farmers across the U.S, according to a release today. The deal comes as farmers face a forecasted increase in farm debt, which is expected to reach a record high $561.8 billion this year, according to the US Department of Agriculture.
FarmOp Capital, which offers working capital based on crop production potential rather than borrower balance sheets, will use the funding to grow its origination capacity and develop new products for the agricultural finance market. Carlyle’s Asset-Backed Finance team led the transaction, leveraging its structuring expertise to support FarmOp’s technology-enabled, crop-insurance-backed lending platform.
The partnership reflects Carlyle’s broader strategy to scale asset-backed finance across specialized sectors, with approximately $9 billion in assets under management as of March 31, according to the release. Legal advisors for the deal included Paul Hastings LLP for Carlyle and Mayer Brown LLP for FarmOp Capital.
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