Macquarie Agricultural Funds Management

MAFM is a wholly owned subsidiary of Macquarie Asset Management, itself a division of Macquarie Group, a publicly listed Australian bank. This structure gives MAFM access to Macquarie's balance sheet and credit rating, allowing it to hold farmland assets through commodity-price downturns that would force independent funds to sell. It also means all material investments must pass Macquarie's internal investment committee, which includes senior bank executives.

MAFM targets irrigated farmland for row crops (corn, soy, wheat), permanent plantings (almonds, citrus, stone fruit), and timberland. It has also invested in agri-logistics assets like grain terminals and cold storage. The firm avoids livestock and commodity trading operations, focusing on land with stable water rights and long tenure.

Both. MAFM primarily raises capital from institutional investors through closed-end funds, but the funds typically acquire direct ownership of farmland. The firm retains a co-investor stake in most transactions and manages the assets through its own operational team or contracted local managers. This alignment means MAFM shares both upside and downside with its LPs.

MAFM's investor base includes Australian and international pension funds (such as AustralianSuper, which co-invested in the 2018 almond orchards acquisition), sovereign wealth funds, endowments, and insurance companies. The funds typically require a minimum commitment of A$50 million and have a 12-year fund life with two extension periods.

MAFM's principal regions are Australia (particularly the Murray-Darling Basin for irrigated crops and the southern high-rainfall zone for timber), the US Pacific Northwest and Midwest, Brazil (cerrado region for soy), and select European countries including Spain and Portugal for permanent plantings. The firm is selective about water-security and regulatory stability.

The core difference is financial permanence. Macquarie Group's AA- credit rating allows MAFM to borrow at investment-grade rates, and the bank's $100bn+ balance sheet means MAFM can hold farmland through commodity cycles without forced liquidations. Independent farmland funds often face distributions after 10 years, forcing asset sales at potentially inopportune market points. MAFM's parent can also provide bridge financing for acquisitions while fund subscriptions are being collected.

MAFM is led by a head of agricultural investments who reports to the global head of natural resources within Macquarie Asset Management. As of 2024, that head is David Fagan, a Macquarie veteran with over 20 years at the firm. The team is spread across Sydney (head office), London (covering Europe), and New York (covering Americas). Macquarie Group's CEO, Shemara Wikramanayake, was previously global head of Macquarie Asset Management but does not directly oversee MAFM.