FarmCap Private Credit Agricultural Mortgage Fund (Diversified)
Private credit funding for family farms & agriculture across Australia.
Investment Highlights
The FarmCap Private Credit Agricultural Mortgage Fund (Diversified) is open for investment with limited availability each month. The fund provides wholesale investors with attractive risk adjusted returns by investing in a mix of agricultural, real estate backed loans secured by registered mortgage across Australia to Aussie farmers.
FarmCap featured in the Australian Financial Review in March 2025 and provides investors with the opportunity to access to a diversified portfolio of agricultural mortgage backed loans. FarmCap maintains a highly regarded market presence in the Australian agricultural community with deep industry knowledge, networks and specialist expertise.
FarmCap is recognised as a leading non-bank lender to Aussie farmers filling a much needed funding gap in the market.
FarmCap is highly selective and 'hands on' in its investment approach with a robust credit process. FarmCap meets every proposed borrower on their farm (as can be seen on our LinkedIn page) including over 30 farm visits in 2024. This ensures a smooth transaction with a viable farmer and personalised approach.
The portfolio maintains diversification across loan size, duration, and geography, with a primary focus on capital preservation through the application of strict loan-to-value ratios and robust credit policies.
FUND NAME: FarmCap Private Credit Agricultural Mortgage Fund (Diversified)
TARGET RETURNS (NET): 9.5-11.5% p.a. RBA cash rate +5-7%
MINIMUM INVESTMENT: AUD $100,000, 12 month initial investment term
ELIGIBILITY: Wholesale and professional investors only
DISTRIBUTIONS & REDEMPTIONS: Quarterly in arrears and quarterly with 30 days notice
MANAGEMENT & PERFORMANCE FEES: 1.75% plus 15% above hurdle rate (BBSW+4%)
INDEPENDENT EXTERNAL TRUSTEE: Brindabella Investment Group Pty Ltd (ACN 626 692 984) AFSL 510735
LOAN TYPES: $200K to $15m, 6-24 month, term loans to Australian farmers and agriculture
LOAN SECURITY: Loans secured by registered mortgage over Australian agricultural real estate with independent valuations
PORTFOLIO MIX: Registered first mortgages and second mortgages (2nd mortgages to a maximum of 30% of loan book). Diversified mix across loan size, duration, farm regions and farm types including broadacre, irrigated cropping, livestock, dairy and horticulture
RETURNS: Attractive risk adjusted returns of 9.5-11.5% per annum net of fees, delivering 'Alpha'
SECURITY: Capital preservation focus with real property, mortgage backed loans, secured by first and second mortgages with maximum LVR up to 70% on first mortgage and 75% LVR on second mortgage loans
backed by independent valuations
LOW VOLATILITY: Fixed income earning linked to increases in BBSW providing a hedge against inflation
DIVERSIFICATION: Access to a diversified pool of agricultural real estate, mortgage backed loans. Returns are uncorrelated to other traditional asset classes
PORTFOLIO ENHANCEMENT: Allocations to alternative private credit investments provide yield enhancement, volatility reduction and downside risk mitigation with capital preservation benefits
LIQUIDITY: Consistent, income generating strategy with regular distributions and attractive high yield returns with loan investment durations typically 6-18 months
MANAGEMENT: Direct access to a dedicated and 'hands on' investment manager committed to the sector with a sustainable competitive advantage and strong relationships with farmers, investors and industry
ESG INVESTMENT: Funding Australian farmers supports food and fibre production with positive ESG impact and benefits
The Fund Manager seeks to mitigate risk by undertaking the following:
- Robust credit policy and recovery framework;
- Detailed due diligence on each transaction;
- Face to face meeting on farm with each borrower;
- Independent valuations by panel approved valuers;
- Investment committee unanimous approval of loans;
- Active and regular loan management from commencement through to maturity;
- Loan documentation prepared by a panel of lawyers;
- Detailed and accurate record keeping and loan management system;
- Recovery policies and processes;
- Independent oversight from Trustee of the Fund.
FarmCap are a leading non-bank, mortgage backed lender and investment manager for Aussie farmers and agricultural businesses who produce food and fibre.
With a track record of having assessed over 1700 farm lending scenarios (as at March 2025) over the past few years from a proprietary deal flow network, our deep farm sector knowledge allows us to unpick a lending scenario in minutes.
We have successfully funded a number of farmers across a range of scenarios across Australia and fill the gaps left by mainstream lenders.
We carefully curate the best private credit opportunities in the market and maintain an impeccable track record and reputation with borrowers, referral network, investors and industry professionals. Our credit process, risk and governance framework is robust and operate with independent oversight.
Our core values underpin everything we do and are proud of our hard work and commitment to Australian agriculture. We stand out with our specialist deep sector knowledge, networks and expertise combined with compassion, integrity and responsiveness.
We build strong relationships with each borrower, meet every farmer on their land and actively participate in industry events. This unique combination of skills, effort, focus and dedication is what ultimately sets us apart and is exactly what farmers have been screaming out for.
Investors can now participate in our pooled fund which provides access to a diversified pool of mortgage backed loans with additional liquidity and diversification, or alternatively invest directly in specific transactions via our contributory fund. We offer a mix of predominantly first mortgage loans combined with selective higher yielding second mortgage loans. We value strong relationships with our investors and invite you to get to know us on a deeper level.
FarmCap strives to make a long lasting, positive impact on Australian agriculture while delivering market leading, risk adjusted returns to investors.
Given we are not a bank, FarmCap can provide:
- Lightning speed responses with smarts
- Compassion, empathy, understanding
- Personalised and humanised lending and business relationships
- Creativity in structuring a lending solution that works and solves challenges
- Assistance when exiting and refinancing
- Genuine support, skills and understanding towards an overall better commercial position
Deep sector agricultural private credit, investment, business, leadership and entrepreneurial experience with a successful track record delivering outstanding results for investors and farmers across a purpose built, national origination network while having personally met every farmer on all transactions to date and built a loyal investor network around Australia and abroad.
Qualifications: Master of Commerce (Accounting), B App Sci, Grad Dip
Former national board member of ARITA with extensive banking experience with ANZ and led the agricultural banking team (SBS) at NAB. Geoff runs a debt advisory and banking expert witness consultancy and brings immense knowledge, expertise and credibility across credit, banking and agriculture.
Qualifications: Chartered Accountant, ARITA member
Strong SME, financial and credit risk experience through his time at PwC, Deloitte and NAB. Andre is a chartered accountant and MBA who has a passion for agriculture and farming. Andre is a pragmatic transactions professional who can unpick challenging lending opportunities and deliver commercial outcomes.
Qualifications: Chartered Accountant, MBA, B Com (Finance / Accounting)
Big 4 alumni (EY), experience in corporate finance, M&A and investments. He is a Chartered Accountant, RG146 holder and completed FASEA studies. Paul has deep financial expertise with respect to investments, real estate assets and transaction structuring. Paul is passionate about private credit and has family interests in cattle farming.
Qualifications: Chartered Accountant, B Com/Bus (Finance/Law)
FarmCap engages a panel of approved lawyers for transactions who specialise in private credit with agricultural transaction experience. Brindabella Investment Group act as independent trustee and custodian ensuring monitoring, compliance, audit, regulation, reporting and transparency for investors.
FarmCap featuring in the media
AFR: The FarmCap agricultural private credit fund launch features in “Street Talk” in the Australian Financial Review on March 18th, 2025. Click here to view the article.
FarmOnline (ACM media): Experienced journalist Andrew Marshall features FarmCap in exploring the non-bank funding gaps for Aussie farmers. Published on April 24th, 2025. Click here to view the article.
Financial Standard: FarmCap featuring in the Financial Standard with a sustainability focus, published on March 23rd, 2025. Click here to view the article.
Farms Advice Podcast: FarmCap features on the Farms Advice Podcast published on 21st April, 2025, discussing the critical role of non-bank lending in agriculture, emphasising the importance of speed, flexibility and empathy. Click here to watch the podcast.
Click here to view our latest Investor Newsletter.
To apply, click here to complete the online application here.
Click here to contact us about investing in FarmCap Private Credit Agricultural Mortgage Fund (Diversified) Fund.
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