Overview
Capital Markets creates and manages private structured offerings for wealth management firms, trust departments, RIAs, and other asset aggregators with $10 million of client capital to deploy. Traditional wealth managers can leverage the benefits of farmland investing on behalf of their clients by partnering with Capital Markets to structure, acquire, and manage farmland assets on their behalf.
ACQUISITION
Capital Market’s offering process begins with developing a customized plan alongside an investment partner that features potential desired asset locations, production characteristics, and investment attributes. Our team is then able to use this plan as a guideline to identify and source fundamentally strong assets at attractive prices that feature the potential for improvement.
DILIGENCE
After identifying a potential asset for purchase, a thorough due diligence process is conducted to ensure all components of the asset are ideal for ownership and suitable for operation. This process includes historical performance, comparable sales, third-party expertise reports, and financial modeling. All information is shared with the client so they can make a decision about moving forward with acquiring the asset.
INVESTMENT STRUCTURING
In addition to developing optimal farm management and operational strategies, our team also coordinates with investment partners to design the ideal legal and business structure for the offering. Typically, a special purpose entity in the form of a partnership or LLC is established for the acquisition and management of the farm over the life of the investment. Capital Markets or an affiliate, as either the General Partner or manager of this entity, co-invests and assumes all decision-making and administrative responsibilities for the entity.
INVESTOR ONBOARDING & COMMUNICATION
Our team then collaborates with the investment partner to enable their clients to purchase limited partner or member units in the entity through Peoples Company Capital Markets’ digital platform to share in the ownership of the farmland asset and become an official farmland investor! Through this platform, we provide annual reports and financial information related to the offering, including K-1’s for investors.
FARM MANAGEMENT
Full-service farm management with a focus on sustainability, fertility, water management, and yields to deliver sustainable performance and income optimization. The Capital Markets team coordinates all management decisions and activities with Peoples Company’s farm management division providing boots on the ground expertise including adaptive operating structures, tenant identification, lease negotiation, and performance reporting.
ASSET MANAGEMENT
Capital Markets oversees and manages the offering throughout the life of the investment. An annual appraisal can be conducted on the farm, providing an updated net asset value for investors to know the status of their investment, as well as to allow for a simplified process for investors to enter and exit the offering throughout its life. Our team reports annually on the status of the asset and the offering financials. We will assist investment partners in determining the best time to dispose of an asset and coordinate the brokerage services with Peoples Company.
