Alternative Equity Advisors

Acquisition and Management of Investment Grade Agricultural Land

Investment Strategy

Alternative Equity Advisors is focused on the acquisition and management of investment grade agricultural land through various investment structures including Limited Liability Partnerships, Limited Liability Companies and Tenant in Common ownership.

We also offer our services to clients through our Separate Account Land Management program for those that desire to take direct ownership of their farmland investment.

Farmland is a logical component to add to an overall investment portfolio as a diversification tool in concert with traditional equity and fixed income investments. The asset class exhibits a solid history of moderate risk and stable investment returns, comprised of both annual income yield and capital appreciation.

Investing in farmland and transitional development properties can be a daunting task for investors. For most, the asset class offers two distinct disadvantages:

  1. The significant up front capital outlay required to get invested.
  2. The operational expertise needed to maximize potential returns.

Alternative Equity Advisors was created to address these challenges and bring together a seamless process of identification, acquisition and professional management of high quality land investment assets.

Investment Criteria & Objectives

Land investing offers several benefits relative to other types of investments:

  • Strong long-term returns
  • Moderate levels of risk
  • Hedge against inflation
  • High demand for US crop production – food, feed, biofuels and foreign demand
  • Limited farmland both domestically and internationally

The Alternative Equity Advisors strategy focuses on agricultural land throughout the U.S.  

Of particular importance on every transaction are the following:

Sourcing

Alternative Equity Advisors seeks off-market transactions which provide a strong entry point and increased asset appreciation potential. We conduct extensive due diligence and on-site property inspections on every asset we acquire or recommend.

Investment Analysis

Each opportunity undergoes our rigorous Land Investment Analysis process. Conservative underwriting criteria, developed from years of industry experience, identifies high quality investment grade opportunities. The income, appreciation and tax aspects of the investment are scrutinized. Various levels of debt and equity are considered to allow the investor to properly evaluate their goals of Internal Rate of Return and annual cash flow.

Land Management

No investment succeeds without the proper team in place. Our investments are managed by an experienced and trusted team of managers. Not only do we expect top-dollar annual income and premium appreciation, but we also require that our investments be managed and operated in a socially responsible manner with sustainability, conservation and water quality issues are actively managed.

Holding Period and Exit Strategies

While entry pricing is critical to success of any investment, of equal importance is the exit point. Annual asset management plans and hold/sell analyses are conducted on each investment so our investors are able to appropriately evaluate a hold or sell strategy.

Separate Account Land Management

Alternative Equity Advisors was created to facilitate third party investment in farmland. For private investors such as family offices, endowments, foundations and institutional investment firms who want direct ownership in farmland the options for making direct investments are limited. The Alternative Equity Advisors platform facilitates direct investments in farmland with our team guiding the acquisition, due diligence and ongoing management of the farmland assets.

The client that desires direct ownership and ultimate control of decision-making will utilize our separate account model. Each client will work with us to design a strategy and portfolio of land investments that is specifically unique to their goals and risk profile. Our separate account model provides each investor with an innovative, economical and comprehensive solution that allows them to deal confidently in the farmland marketplace. The program marries the acquisition phase with streamlined asset management. We will lead the client through all phases of the investment process: documentation of the client’s goals, identification of land acquisition opportunities, completion of detailed property analysis, negotiation of acquisitions, negotiation of equitable lease, management of the asset for both income and appreciation, reporting of results and periodic analysis of buy, hold or sell strategies.

Farmers

Through third party management agreements, Alternative Equity Advisors has top tier farmers as tenants or custom farm operators on our client’s farms. We have opportunities in many areas for farmers to gain access to leased land. We also recognize that the local farmer is often the first to know that an existing landowner in the area is considering selling their farm. This “first-to-know” status and access to off-market transactions have proven time-and-again to be valuable links in structuring transactions that meets the needs of the seller, our client as the buyer and the farmer as the tenant/custom operator.

About Us

Alternative Equity Advisors is a real asset investment firm specializing in the acquisition and management of agricultural farmland assets in the United States for private investors such as family offices, endowments, foundations, high net worth individuals, and institutional investment firms. Alternative Equity Advisors will acquire and manage farmland assets for each client on a separate account basis, and every asset will be acquired within the client-directed investment mandate.

Alternative Equity Advisors was founded in 2011 to facilitate third party investments in agricultural assets for Peoples Company clients.