Carlyle has agreed to purchase $250m of agricultural loans from US-based FarmOp Capital in a private credit transaction structured as a forward flow agreement, according to a report by Bloomberg.
Under the terms of the deal, Carlyle will buy loans as they are originated, providing working capital to farmers managing seasonal cash flow – particularly those renting land and underserved by traditional banks.
The deal comes amid mounting financial pressure on US farmers, with small-business bankruptcies in the sector reaching their highest level since 2020, driven by falling crop prices, rising input costs, and weaker demand from China.
FarmOp’s loans, which average $3.5m and carry 18-month terms, are backed by grain crops such as corn, soybeans, and wheat, as well as crop insurance and hedging contracts.
The investment is part of Carlyle’s broader expansion in asset-backed private credit, a $9bn platform that includes exposure to consumer loans, residential solar finance, and fintech partnerships.
This is a stable but growing asset class, said Akhil Bansal, Head of Asset-Backed Finance at Carlyle.
Carlyle’s recent activity includes a financing partnership with Citigroup and a solar loan deal with Sungage Financial. Other firms active in the space include Castlelake and Blue Owl, which have bought consumer loan portfolios from fintech lender Pagaya.
Private credit firms that are growing in the market have focused on buying large consumer loan portfolios. Castlelake and Blue Owl Capital, for instance, have purchased billions in consumer loans from financial technology firm Pagaya Technologies.
