Global investment firm Carlyle has announced a $250 million forward-flow agreement with FarmOp Capital, aimed at purchasing newly issued farm operating loans. This partnership is designed to increase FarmOp Capital's origination capacity and provide more capital access for independent row crop farmers across the United States.
FarmOp Capital offers working capital solutions that allow farmers to access operating credit through innovative, crop insurance-backed underwriting models. These models differ from traditional lenders by focusing on the farmer's ability to produce crops rather than their balance sheets.
Keir Renick, CEO of FarmOp Capital, expressed enthusiasm about the collaboration: “We are extremely excited to begin working with Carlyle because it really represents not only new, extensive growth for FarmOp Capital and our customers, but also our stability and longevity in the industry.”
Akhil Bansal, Head of Asset-Backed Finance at Carlyle, stated: “We are thrilled to partner with FarmOp Capital, a differentiated platform in the agricultural finance space bringing together technology, credit discipline, and farmer-first innovation.”
Gregory Gudis from Carlyle’s Asset-Backed Finance team added: “At Carlyle, we recognize the critical role that working capital plays in sustaining independent U.S. farmers.”
The transaction was led by Carlyle Asset-Backed Finance (Carlyle ABF), part of Carlyle’s Global Credit platform focused on private fixed income and asset-backed investments. Paul Hastings LLP served as legal advisor for Carlyle in this transaction while Mayer Brown LLP advised FarmOp Capital.
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