Approach

What We Do

While our experience and capabilities are broad based, the Rural American Fund focuses on making control investments in established, privately-held U.S.-based businesses, principally in agriculture or ag-related industries. 

The firm participates in several types of ownership change transactions, including management and leveraged buyouts and growth recapitalizations.  Using our extensive relationships in the agricultural and financial communities, we work to create “win-win” partnerships with shareholders and management.  Post-partnership with RAF, portfolio company shareholders typically retain a significant minority interest in their company and management is further incented to continue driving profitable growth, thus aligning the goals of all stakeholders.

As an equity partner, RAF offers business owners the ability to reduce their risk and create some liquidity while retaining the opportunity to significantly benefit from the future growth in their businesses. Rural American Fund’s objective is to create attractive returns for our investors and management partners in each and every investment.

How We Work

Rural American Fund works with and listens to shareholders and management teams to understand their operations, growth strategies, opportunities and threats and, then, develops a capital structure to suit the business model including taking into consideration the company’s near and long-term goals.  RAF pursues investment opportunities where it sees a close fit between the operating style and objectives of the shareholders / management team and Rural American Fund which helps ensure that a strong working relationship will be established post-closing.

Post-closing, the firm focuses its value-creation efforts on supporting management in setting a clear growth plan and providing board-level support and access to supplier and customer relationships to accelerate plan execution.  While a select group of RAF team members and ag-entrepreneur partners often serve on the board of directors and in a support role to company shareholders and management, RAF is not involved in the day-to-day operations of its portfolio companies.

Our Commitment

Rural American Fund understands that for most shareholders bringing on a private equity partner represents a defining moment for their business and will have a significant impact on their professional and personal futures. Our firm’s commitment is guided by the understanding that every partnership investment has unique characteristics, challenges, and goals.  With this understanding, RAF is dedicated to helping its shareholder and management partners improve their businesses and grow their value. 

The Rural American Fund team maintains a consistently high level of enthusiasm, focus, and commitment to our management teams throughout our stewardship.  We leverage our industry and financial expertise as well as our knowledge of our individual partnership investments to optimize exit alternatives for the benefit of shareholders, management, and RAF limited partners.