Investment Criteria

Rural American Fund is highly focused on strong, lower middle-market agribusinesses where RAF and its ag-entrepreneur partners have deep sector knowledge and direct-to-company expertise. This allows for attractive partnerships and substantial opportunity for value creation.

Transaction Types

Recapitalizations (including, management and leveraged buyouts and growth recapitalizations); acquisition financings; growth financings; and, shareholder liquidity events

$10MM+

Revenue

$2MM+

EBITDA

$5 -10MM

Equity Investment Range

Company Size

Platform Investments

Revenue:  Minimum $10 million
EBITDA:  Minimum $2 million

Add-on Acquisitions

Revenue: No minimum
EBITDA: No minimum

Equity Investment Size

$5-10 million in Equity per platform

Structure

Prefer control or influential equity positions, but will evaluate minority equity positions on a deal-by-deal basis

Characteristics

  • Proven management team
  • Strong business model with sustainable growth drivers and a high degree of value-add
  • Consistent history of revenue and cash flow
  • Solid customer relationships
  • Defensible market position
  • Identifiable exit strategy

Industry Verticals

Primary Agribusiness Areas of Interest:

  • Agronomic Testing Systems & Services
  • Crop Nutrients & Fertilizers
  • Crop Production & Processing
  • Food Security & Food Authenticity
  • Irrigation & Drainage Systems
  • Precision Ag Systems & Services
  • Protein Production & Processing
  • Seafood & Aquaculture
  • Seeds & Seed Genetics
  • Specialty Ag Chemicals & Coatings
  • Specialty Ag Machinery & Equipment
  • Value Added Distributors