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Advantage Capital Agribusiness Fund

A strong U.S. economy is contingent upon a strong rural economy – and yet investment capital is far less available in rural areas than in urban ones. Providing rural entrepreneurs with access to capital is critical to economic development and job creation.

To help address the limitations of traditional methods of equity financing in rural America, CoBank and eight Farm Credit organizations have joined with Advantage Capital Partners to create the Advantage Capital Agribusiness Fund.

The $150 million fund will develop a balanced and diversified portfolio of junior capital investments and focus on later-stage growth-oriented small businesses involved in agriculture, processing and marketing of agricultural products, farm supply, input suppliers and rural communications. The fund will operate for 10 years, accepting new investments for the first five years.  Advantage Capital Partners is the managing partner of the fund.

The fund was formed as a Rural Business Investment Company (RBIC) and is licensed by the U.S. Department of Agriculture through its Rural Business Investment Program (RBIP) to promote economic development in rural America. An RBIC works like a private equity fund: a fund manager raises money from a group of investors and then invests that money in a variety of private businesses. While the fund is supported by the USDA, it is non-leveraged, which means no taxpayer funds will be utilized.

For more information about the Advantage Capital Agribusiness Fund, current projects and how to apply for funding, please contact Scott Murphy, managing director and chief investment officer at Advantage Capital Partners.

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