Southwestern Farm Capital Fund II Seeks $15 Million Capital Raise From Accredited Investors
Southwestern Asset Management, a Texas-based sponsor of investments in essential real estate assets, launched its latest Regulation D 506(c) offering: Southwestern Farm Capital Fund II. The fund intends to raise $15 million from accredited investors to acquire, manage, and lease farmland and farm-related properties.
Officially launched on April 1, Southwestern Farm Capital Fund II has invested in 2,800 acres of dry and irrigated farmland. The fund intends to raise capital until the end of the year, at which time it plans to begin a five-year hold and operating period. The fund has an investment minimum of $25,000, expects a 10% preferred return annually, and offers potential bonus shares for early investors.
“We are excited to launch Southwestern Farm Capital Fund II,” said Cole Gilliam Parks, Southwestern’s founder and chief executive officer. “While the original Southwestern Farm Capital Fund did not reach its targeted capital raise, the overall investment performance exceeded our expectations, demonstrating the effectiveness of our investment strategy. I expect Southwestern Farm Capital Fund II to continue to build upon the successes of [Southwestern Farm Capital Fund] by incorporating valuable feedback from our investors and their trusted advisers right out of the gate.”
Southwestern Farm Capital Fund II follows closely on the heels of Southwestern Farm Capital Fund, which closed at the end of 2023 after acquiring more than 1,650 acres of cultivated farmland and native pasture. Two properties have already gone full cycle, generating more than 17% net annual returns to the fund after the sponsors carried interest and fees.
The founders of Southwestern Asset Management have roots in the agriculture industry, coming from at least six generations of farming, livestock production, and agribusiness services. The firm manages multiple limited partnerships, Reg (D) offerings, and direct real estate investments in agriculture, single-family, and multifamily housing.
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