Permanent Crop Development
Ground-up permanent crop development captures value that stabilized acquisitions cannot — but only when water is secured before planting, not underwritten to be secured after. Fund 08 develops orchard and vineyard acreage exclusively on land where the water security question has already been answered.
Why this strategy, why now.
Almond, pistachio, and premium wine-grape orchards take five to seven years to reach mature yield, with meaningful capex through that ramp. The value created is in the yield curve plus the crop-mix optionality; the value destroyed, historically, is in developments started on water assumptions that did not hold.
How we underwrite this fund.
- Water security is a precondition, not a diligence output. Development does not begin until surface, groundwater, or banked-water status is documented for the full projected orchard life.
- Variety and rootstock selection is coordinated with a specialist agronomy team; new plantings are diversified across bloom windows to reduce weather concentration.
- Development capex is programmed on a documented schedule — irrigation infrastructure, trellising, wind machines, storage — and funded from a dedicated development reserve.
- Sale-versus-hold decisions on developed acreage are made against the mature yield curve, not the pre-mature multiple.
Where the acreage sits.
California San Joaquin Valley (SGMA-secure sub-basins only), Central Coast (wine-grape with documented water), and Pacific Northwest apple/cherry replant acreage where senior water rights already convey.
What we do after the acquisition.
Dedicated development team coordinates site preparation, planting, and ramp-year management. Specialist operators are engaged post-ramp for stabilized production. Every development site has a documented capex-to-mature-yield curve reviewed against actual quarterly.
What we watch, and what we don't hedge.
Development risk — the classic yield-ramp and capex-overrun exposure — is real; the fund manages it through geographic diversification, staged development, and a preserved cash reserve rather than through leverage.
Structural notes.
Fund terms shown are structural summaries only. Prospective limited partners should refer to the Private Placement Memorandum, Limited Partnership Agreement, and Subscription Documents for complete terms, fees, and risk disclosures.
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