Global investment firm Carlyle Group has announced a $250 million deal to purchase a portfolio of agricultural loans, marking a significant move into the private credit market focused on U.S. farming and agribusiness.
The deal, which underscores growing investor interest in alternative credit strategies, will give Carlyle exposure to secured loans tied to farmland, agricultural equipment, and crop production. The loans are expected to deliver steady returns amid rising interest in food security and sustainable farming practices.
Carlyle’s push into agricultural credit reflects a broader trend of private equity firms targeting non-traditional lending opportunities, particularly in sectors with strong asset backing and essential demand. Analysts say farmland and agribusiness loans are increasingly attractive due to their resilience during economic downturns.
The firm did not disclose the seller, but sources familiar with the matter say the portfolio includes a mix of performing loans originated by regional agricultural lenders.
Carlyle’s expansion into farm credit comes as institutional investors seek yield and portfolio diversification beyond traditional corporate debt and real estate. The move also positions Carlyle to play a larger role in rural economic development and sustainable agriculture finance.
