By Gerelyn Terzo, Global AgInvesting Media
Harvest Returns, a Forth Worth, Texas-based ag investment platform, has introduced the Harvest Returns Private Credit Fund II, a sequel to the first investment vehicle launched in 2023. Harvest plans to build on the success of its maiden fund to provide accredited investors with the opportunity to generate steady, risk-adjusted income streams by directly lending to American farmers, ranchers and agri-businesses.
Harvest Returns launched the fund in response to demand for flexible financing within the agricultural sector, especially in the current capital constrained economy. Harvest Returns says it offers a critical alternative to American farms, providing crucial capital for operational needs, expansion projects and other growth initiatives. Harvest’s credit fund supports American farmers and ranchers, fueling the growth and sustainability of the ag sector.
The credit fund’s strategy is to deploy capital through carefully underwritten loans secured by real assets, including land, equipment and livestock, for example. In doing so, Harvest is providing investors with a layer of capital protection while offering what it describes as attractive yields. Harvest will target a diversified loan portfolio across various regions and agricultural sectors to both mitigate risk and deliver exposure to the breadth of American agriculture, the firm explained.
Harvest Returns CEO and Fund Manager Chris Rawley stated, “We are excited to launch our second Private Credit Fund, further solidifying our commitment to supporting the backbone of the American economy. The continued success of our first fund demonstrated a strong appetite from investors for stable returns through a diversified agriculture debt portfolio, and the significant need for tailored financing solutions within the farming community.”
Investors seeking consistent income, reduced volatility and managed risk, coupled with tangible impact and experienced oversight, may find the Harvest Returns Credit Fund II compelling. The fund employs a dual strategy, aiming for regular income distributions and uncorrelated financial returns relative to traditional assets like the stock market. Risk mitigation is central to its approach, achieved through diversification across loan types, geographies and borrower profiles, further secured by real asset collateralization. Notably, Harvest Returns has delivered a 9.8 percent annual return for its private credit investors over the past half-decade.
American farmers and agribusinesses are poised to gain greater financial control and strategic advantage through new avenues that prioritize their unique capital requirements. These opportunities include the ability to negotiate flexible financing arrangements, moving beyond the constraints of conventional banking. Furthermore, a streamlined pathway to crucial capital will empower growth, drive innovation and enhance operational efficiency within the sector. Farming operations and agri-businesses can leverage a distinct advantage by partnering with a platform deeply rooted in the agricultural landscape, offering an intrinsic understanding of the industry’s intricacies.
Accredited investors interested in learning more about the Harvest Returns Private Credit Fund II can do so here.
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