Press Release – Foresight Analytics Rates the FarmCap Private Credit Agricultural Mortgage Fund (Diversified) as ‘STRONG’
Sydney, 18th December 2025
Foresight Ratings has recently completed a ratings assessment of the FarmCap Private Credit Agricultural Mortgage Fund (Diversified).
The fund has been assigned a STRONG investment rating, indicating a strong level of confidence that the strategy can deliver a risk-adjusted return in line with its investment objectives. The Manager’s resourcing, underwriting, deep industry knowledge and risk management skills are strong, as is their alignment with investor interests.
The Foresight Product Complexity Indicator (PCI), which considers the complexity of an investment product based on 10 risk factors, was assigned as COMPLEX for the FarmCap Private Credit Agricultural Mortgage Fund (Diversified). This rating primarily reflects the complex or special situation loans that require extensive due diligence, as well as the illiquid nature of the investments.
The FarmCap Private Credit Agricultural Mortgage Fund (Diversified) is an open-ended unit trust structured for wholesale and professional investors. It focuses on providing financing solutions to Australian farmers, primarily targeting loans secured by registered mortgages over agricultural/rural real estate. The Fund aims to achieve an absolute return of 9.5%-11.5% p.a.. The Fund was launched recently and as such is in the process of building fully diversified exposure. FarmCap, the fund manager, identifies and underwrites loans ranging from $200,000 to $15,000,000 with terms typically lasting 6 to 24 months. The strategy is focused on capital preservation through real property, mortgage-backed loans. The Fund structures loans to achieve an attractive risk-adjusted return with exposure to first and second mortgages, on agricultural real estate-backed loans across Australia.
As a boutique and specialist financier, FarmCap emphasises its deep sector agricultural private credit knowledge and ‘hands-on’ approach, including visiting every proposed borrower on their farm. This specialist expertise, backed by an experienced team, allows FarmCap to fill a funding gap left by mainstream banks, handling complex and non-conventional scenarios for quality farmers with significant equity in their farmland assets.
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About Foresight Analytics’ Investment Due Diligence Rating (IDD Rating)
The objective of Foresight Analytics’ Investment Due Diligence Rating (IDD Rating) is to identify the best funds and opportunities for future investment. We assess the fund’s historical risk-adjusted performance, compared to its peers, to form a holistic view of the manager’s ability to deliver future returns. The IDD rating indicates the quality of the investment option within the context of a diversified portfolio and full investment cycle.
Foresight’s analysts use a 5-point scale to determine how the fund will perform against a range of risk factors.
- SUPERIOR indicates the highest level of confidence that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is highly suitable for inclusion on APLs.
- VERY STRONG indicates a very strong conviction that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is suitable for inclusion on most APLs.
- STRONG indicates a strong likelihood that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is suitable for inclusion on most APLs.
- COMPETENT indicates the fund may deliver a risk-adjusted return in line with its relevant benchmark and that it may be suitable for APLs.
- WEAK indicates the fund is unlikely to deliver a risk-adjusted return in line with its investment objective and that it is not suitable for most APLs.
A ‘Hold’ designation is applied to a fund’s rating if a material change impacts the fund manager, and we need to review the rating. A ‘Sell’ designation indicates the Foresight Investment Ratings Committee considers risk factors to be elevated enough that maintaining an investment in the fund as part of their diversified portfolio is questionable.
Foresight Analytics Foresight Complexity Indicator
A Foresight Complexity Indicator (FCI) highlights the complexity of an investment product based on a range of indicators. These typically include its terms and conditions, performance-based fees, liquidity structure, financial leverage, use of derivatives, rare and niche asset class/opportunity set, currency exposure and the level of transparency offered for investors. Foresight believes these factors can disproportionately affect risk-adjusted return outcomes for investors even if a manager is very skilled. Investors can use FCI as a guide to portfolio position sizing within a diversified portfolio context.
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Email: divya@foresight-analytics.com
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About Foresight Analytics
Foresight Analytics, an independent Sydney based firm, provides investment diligence, data analytics, and advisory solutions to leading investment management companies, superannuation funds and wealth groups across the Asia Pacific. Foresight’s innovative, evidence-based approach blends both human and forensic insights to provide a range of analytical, predictive and market intelligence solutions to investors. Foresight Analytics was founded in 2015 by Jay Kumar, a former executive of Morningstar, Optimix Investment Management, ANZ Wealth & Private Bank and the Reserve Bank of Fiji.
Foresight’s fiduciary solutions include Diligence Services (Investment, Operational, ESG & Risk Diligence), Data Analytics and Asset Consulting. Foresight’s fund strategy solutions include Data Analytics for asset managers, Fund Strategy Benchmarking Solutions and Strategic Research.
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