October 16, 2016

The U.S. Department of Agriculture (USDA) has announced the launch of a new private investment fund and its fifth Rural Business investment Company (RBIC) launch since 2014 – the $100 million McLarty Capital Partners (MCP) Rural Investment Fund.

As part of the Made in Rural America initiative created by President Obama to foster growth for rural businesses, the USDA has formed this new fund through the Rural Business Investment Program (RBIP) with the goal of attracting private sector capital to investment opportunities in rural markets.

“Innovative small businesses throughout rural America need the same access to capital as their urban business counterparts,” said Agriculture Secretary Tom Vilsack. “McLarty Capital Partners is an important ally in USDA’s efforts to reenergize the rural economy, help small businesses grow and strengthen local communities.
Founded in 2012 by Franklin McLarty and Christopher Smith, McLarty Capital Partners provides financial solutions to U.S.-based small and medium sized enterprises. The MCP Rural Investment Fund will work to ensure that rural businesses, largely squared on agriculture and the agri-food supply chain, have access to the funding needed to achieve their strategic growth targets.

“We are pleased to partner with USDA in this innovative public-private partnership to propel and sustain small business growth in rural America,” said McLarty Capital Partners co-founder, Franklin McLarty. “With roots in America’s heartland, McLarty Capital Partners is committed to ensuring that small and medium sized enterprises have the means necessary to achieve their business goals, and this endeavor only furthers that mission.”

In 2014, the USDA launched the $154 million Advantage Capital AgriBusiness Partners (ACAP) fund as a vehicle for private equity investments in ag-related businesses including cutting edge technological companies related to bio-manufacturing, advanced farming technologies and both local and regional food systems. Since its launch, ACAP has made 11 investments totaling $39 million in a range of businesses including organic herb producer, Shenandoah Growers, botanical product supplier, American Botanicals, the largest crop residue supply chain solution company, Pacific Ag, and producer of organic poultry products and entrées, Hip Chick Farms.

The Open Prairie Rural Opportunities Fund was also launched earlier this year and U.S. Secretary of Agriculture Tom Vilsack announced the conditional approve of other RBICs including Innova Ag Innovation and the Meritus Kirchner Ventures in 2015. Additional funds are currently undergoing consideration and review by the department.

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Lynda Kiernan