VENTUS AG CA PI TA L
WHY INVEST IN AG LAND? Investing in land is a unique asset class that’s not available to many on a large scale Land generally considered recession-proof and pandemic-proof Agricultural land values have increased 45 out of the last 50 years1 Annual appreciation over last1: 10 years – 4.27% 20 years - 5.88% 30 years – 5.40% Protect a portion of your portfolio by hedging against stock market volatility and inflation Agricultural land acreage continues to shrink as global population continues to increase2 Farm and Ranch land generates cash flow on day 1 Rise in properties coming to market: Baby boomers retiring Heirs don’t desire to come home to family business Liquidating valuable asset Operating cash constraints Cheap financing: Ability to lever agricultural real estate at favorable terms mitigates risk and improves returns to stakeholders 1USDA: https://www.ers.usda.gov/topics/farm-economy/land-use-land-value-tenure/farmland-value/ 2American Farmland Trust: https://foodtank.com/news/2018/07/american-farmland-trust-decreasing-farmland/
LAND VS. S&P 500 3,500 30,000 3,000 25,000 2,500 20,000 2,000 15,000
1,500
10,000 1,000 5,000
19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18
500
LAND VALUES
S&P 500
STRUCTURE EXPECTATIONS & CRITERIA Hold each property 2 to 5 years Tax advantages: cost segregation write offs in year of purchase, 1031 transfers, capital gains treatment Returns, net IRR to LP Worst case: 6% Base case: 12% Best case: 20%
DIVERSITY Various uses: Hedge against commodity and demand risk Combination of grazing land, CRP, dryland farm, irrigated farm, recreation Various geography: Maximize opportunity for alternative streams of cash flow (water, renewable, carbon cred its, etc) Hedge against weather and industry patterns
RAISE & STRUCTURE Desired raise of $25MM with minimum of $10MM Secure all commitments and close fund by 12/31/21 Minimum commitment $2.5MM GP will invest alongside LP Timeframe to fully deploy capital: 18 months
TERMS Waterfall of proceeds: Repay debt LP receives 100% return of capital before GP carry LP receives 5% preferred return before GP carry GP then receives a catch up to their 20% carried interest at 100% All remaining proceeds split 80% LP / 20% GP GP management fee 1% of AUM
JT HAYNES, PRESIDENT JT was raised on a ranch north of McLean, Texas where his parents still reside today. His father, once a rancher turned preacher, and his mother, a CPA, instilled strong work ethics and a sense of always trying to exceed people’s expectations. JT acquired his undergraduate degree and Masters in Agricultural Science from Texas Tech University in 1996. While still attending college, JT received his Texas Real Estate license and in January 2010 received his Texas broker’s license and started Triangle Realty, LLC. Triangle Realty is a real estate brokerage firm based in Amarillo, TX that specializes in agricultural land. While running Triangle Realty, JT started his first ag investment fund in 2012. JT owes his successful career to his mantra, “It’s the little things you do, that you don’t have to do, that make all the difference when nothing else matters.” When not spending time with his wife and two sons, he enjoys golf, team roping, and aviation.
TYLER HOLLAND, MANAGING DIRECTOR Tyler received a BA in Finance followed by Master’s of Accountancy from the University of Oklahoma in 2006. After obtaining his CPA license, he began his career in public accounting with KPMG’s Dallas office. In 2009 he joined Athas Health, a start-up venture, which specialized in direct-to-consumer marketing within the healthcare space. After growing to $60MM in revenue Athas was sold in 2014. In 2015, Tyler acquired Hughes Trailers, a trailer manufacturing company, which he operated and grew as the CEO for 3 years prior to selling in 2018. Through this venture, he gained many relationships in the agricultural industry as well as a keen understanding and appreciation for commodity risk. He then consulted as the COO for Sand X, an oilfield services company prior to co-founding Ventus Ag Capital in 2020. His experience and specialties include entrepreneurial endeavors in multiple industries, start up, growth, M&A, management, and financial analytics. Tyler enjoys spending time with his wife and two kids, team roping, working on the family ranch, and hunting.