Investment of $250 Million by Carlyle in FarmOp Capital to Enhance Agricultural Funding for Farmers
In a groundbreaking move, global investment firm Carlyle and agriculture finance company FarmOp Capital have announced a strategic partnership worth $250 million. This partnership will see Carlyle purchasing newly issued farm operating loans from FarmOp, thereby enabling the latter to expand its loan origination capacity.
The aim of this partnership is to increase access to flexible financing for independent row crop farmers across the United States. This is particularly significant as many farmers, especially multi-generational ones and those with limited land ownership, often face financing challenges.
FarmOp Capital's innovative approach to lending addresses this issue by using a technology-enabled, crop-insurance-backed platform. Each loan is secured by insured crops and governed by milestone-based draw schedules and stringent oversight, creating a highly controlled credit structure with strong risk protections.
Carlyle's Asset-Backed Finance team brings structuring expertise to this partnership, aligning with their broader strategy to expand asset-backed financing in specialized sectors. This partnership not only expands FarmOp's origination capacity but also symbolizes growing private equity interest in agriculture as a resilient, high-yield asset class with environmental, social, and governance (ESG) and sustainability considerations.
Gregory Gudis, a Principal on Carlyle's Asset-Backed Finance team, emphasized the importance of providing flexible financing to independent U.S. farmers through this partnership. Akhil Bansal, Head of Asset-Backed Finance at Carlyle, praised FarmOp's platform that combines technology, credit discipline, and farmer-first innovation.
Keir Renick, CEO of FarmOp Capital, expressed excitement about the partnership with Carlyle, stating it will drive growth and stability for the company and its customers. He believes this partnership will enable FarmOp Capital to continue bringing operating loans to farmers and innovate new products and offerings.
Mayer Brown served as the legal advisor to FarmOp Capital in the transaction, while Paul Hastings served as the legal advisor to Carlyle. This partnership is a reflection of Carlyle's continued commitment to scaling asset-backed finance across specialized sectors.
As of March 31, 2025, Carlyle’s Asset-Backed Finance platform manages approximately $9 billion in assets, signaling significant capacity to support scalable, innovative lending models for agriculture. The partnership between Carlyle and FarmOp Capital is expected to enable FarmOp Capital to continue bringing operating loans to farmers and innovate new products and offerings.
[1] Carlyle Press Release, [Link to Press Release] [2] FarmOp Capital Press Release, [Link to Press Release] [3] Agriculture Finance Journal, [Link to Article]
- Carlyle's involvement in this partnership demonstrates their interest in expanding asset-backed financing, specifically in the agriculture sector, where they aim to provide flexible financing to independent row crop farmers through this $250 million strategic partnership with FarmOp Capital.
- FarmOp Capital's partnership with Carlyle will not only enhance their loan origination capacity but also allow them to innovate new products and offerings, further improving access to financing for farmers, particularly those encountering financing challenges.
