How FarmCap consistently delivers “alpha” on a platter for investors

We recently stumbled on a town in Queensland called Alpha located 170km from Emerald, on our way to a farm visit for a private credit transaction.

The nature of this town and transaction epitomises what we do and we had to stop for a photo.

The ‘Welcome to Alpha’ sign is not AI.

It’s not tech.

It’s not automated.

It’s a photo on the side of the road, quite the distance from our Melbourne office which articulates our ability to consistently generate alpha – strong, outperforming returns while managing risk.

Fundamentally, this transaction is a loan to a farmer at a conservative LVR secured by agricultural land with a clear exit strategy which pays a high yielding interest rate to investors.

However, what we do to deliver alpha on a platter to investors day in day out requires the unique combination of specialised skills, knowledge, experience and networks, commitment and passion with a bespoke approach.

We play in a niche that is underserved – agricultural lending at the family farm end of the market.

While most other credit funds have to compete for deals on lower pricing and higher LVR risk – we don’t.

We are privileged to say ‘no’ a lot and proceed selectively within our credit risk framework.

We have built a strong reputation in the market where referrers and farmers across the country call us as their first point of call for funding assistance.

We carefully assess each deal on its merits efficiently with smarts, empathy and speed and value every incoming opportunity.

Having now assessed over 1850 transactions, our deep sector knowledge positions us ‘in the know’.

It’s the willingness to do the hard work and commit to the sector.

To visit farmers immediately on their land with compassion and understanding to work out a funding solution to help them to be better off.

It’s the ability to understand Australia’s diverse agricultural regions and the underlying dynamics and economics of each unique farm to make informed decisions with due diligence accompanied by specialist independent agricultural land valuations.

It’s EQ equally as important as IQ when dealing with farmers who have been on the land for multiple generations.

It’s the exclusive access to private market opportunities and information not publicly available.

We solve funding challenges that others can’t and structure deals that ensure our capital is protected with a clear pathway to an exit with conservative views on farming performance.

A clean and consistent record of investment performance is proof in the pudding.

Our deals are 100% agricultural land backed with very low volatility in agricultural land values. We are a nimble, entrepreneurial and values driven team which maintain the highest standards.

The above explanations of how we generate ‘alpha’ are qualitative, but which can be measured quantitatively. We aim to remain a boutique outfit that stays ‘hands on’ with borrowers and investors without layers of management.

We work exclusively with a limited number of investors who support and understand what we do – deliver higher yields with lower risk.

Smart investors, family offices and wealth managers have caught on and started hunting us down and we encourage wealth managers to be proactive in their search for alpha.

Where will you find us? Likely on the road in another town just like Alpha, somewhere across the country hunting down more alpha.

Limited investment opportunities are currently available each month and we invite wholesale investors to request a copy of our Information Memorandum. FarmCap Pty Ltd is corporate authorised representative number 001312171 offering wholesale investors an investment in a wholesale managed investment scheme as licensee of Brindabella Investment Group Pty Ltd (ACN 626 692 984) AFSL 510735.