Alternative Equity Advisors

Alternative Equity Advisors (AEA) provides separate account asset acquisition and management for individuals and institutions seeking to deploy at least $10 million into the U.S. farmland asset class. U.S. farmland investment offers stable long-term returns, extensive transaction opportunities, low or negative correlation with publicly traded stocks and fixed income securities, and high correlation with inflation.

Farmland Investment Strategy

AEA employs a five-pillar strategy to generate premium returns from farmland investments.

Active Management to Market Trends

AEA aligns asset selection and management with growing consumer preferences for transparent and sustainable food production. Farmland and crop production that exceed market standards and certification can deliver premium returns.

Adaptive Operating Models

AEA has developed an asset management platform that provides flexibility for maximizing returns within each investor’s risk tolerance. This platform includes a robust, nationwide network of leading farm operators; proprietary lease contracts with cash rent, flex cash rent, and crop share payment structures; direct operations support; and diligent use of federal crop insurance programs to mitigate risk.

Capital Appreciation & Sustainable Management

AEA enrolls all managed acres into the Leading Harvest sustainability certification program. Achieving and maintaining this certification not only will drive farmland appreciation by improving long-term soil fertility and yields but also contribute to a more sustainable society.

National Scale Proprietary Deal Flow

AEA has access to a national network of land professionals providing local and regional market knowledge in all major U.S. agricultural regions to create a robust and unique pipeline of farmland acquisition opportunities.

Technology Implementation

AEA deploys a suite of technology solutions to support due diligence processes and asset management. These solutions lower costs, improve profitability, and help identify and resolve issues or even stop them before they occur. AEA selectively makes venture capital investments in or partner with, promising ag-tech companies to provide early-stage access to emerging technologies and data solutions.

Portfolio Customization

AEA collaborates with each client to design an investment strategy that will build a farmland portfolio to meet the client’s objectives. Each farmland portfolio is owned directly by the investor under a separate account structure.

Client objectives to be considered include:

Target Investment Amount

Investment Time Horizon

Long-term: focused on wealth creation and transfer
Medium-term: combining income and capital appreciation
Short-term: “fix and flip” strategies benefiting from below market acquisitions

Crop or Regional Preferences

Conventional row crops
Permanent crops
Value-added production
Pacific Northwest, Pacific West-California, Midwest, Delta, and Lake States

Asset Operating Model Based on Target Return and Risk Tolerance

LOWEST RISK

Cash rent lease
Flex lease
Crop share
Custom farming
Direct operations

HIGHEST RETURN POTENTIAL

Relative Importance of Current Yield and Capital Appreciation in Total Return

Comprehensive Investment Services

AEA implements investment strategies by sourcing, acquiring, and managing appropriate farmland assets on the investor’s behalf. AEA investors gain control over which assets to acquire, how they are managed, and when to divest of them with the expert advice and assistance of AEA throughout the entire investment life cycle.

Portfolio

Production systems
Geography
Analytics
Deal sourcing strategies

Acquisition

Deal sourcing
Letter of intent
Purchase and sale agreement negotiation
Closing execution

Diligence

Financial modeling
Historical asset performance
Asset valuation
Network of domain experts

Business Plan

Net income optimization
Operational analysis
Revenue protection strategies
Sensitivities and scenarios

Farm Management

Annual asset business plan
Tenant identification and negotiation
Custom and direct operations
Asset performance and sustainability reporting

Disposition

Digital and print marketing
Network engagement
Listing and auction services
Closing execution

Farmland Acquisitions

AEA is continuously looking for farmland assets across all geographic locations and production systems to acquire for clients. AEA offers farmland stakeholders an alternative source of liquidity for their farmland assets with flexible sale solutions. To discuss sale opportunities with AEA, please contact Hunter Norland by emailing Hunter@AlternativeEquityAdvisors.com.

Contact

The Capital Markets division of Peoples Company, a nationally recognized land transaction and management firm, supports Alternative Equity Advisors. Through the market leading deal flow generated from Peoples Company’s national network of farmland professionals, dedicated acquisitions staff, proprietary data infrastructure, and asset management capacity Peoples Company Capital Markets can syndicate farmland assets through a variety of structures including separate accounts, retail investments and structured finance.

Visit the link below to learn more about the Peoples Company Capital Markets team and its additional services and products.

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