May 24, 2024

Horticulture’s Changing Tastes are a Win for Private Credit


Shifting demand trends in horticultural production, driven by new export markets and aging plantings, are creating significant capital investment opportunities in Australia and New Zealand. This dynamic aligns strongly with Merricks Capital’s hard asset lending strategy.

Over the past five years, Merricks Capital has demonstrated a robust track record, successfully funding over $250m in diverse horticulture projects. These loans include wine grapes, apples, cherries, avocados, and other stone fruits, consistently yielding substantial returns. This week, we received the first part ($14m) of full repayment for funding that supported a New Zealand apple business. The business transacted its orchards in line with 2022 valuations despite the region being significantly impacted by Cyclone Gabrielle in February 2023, representing a favourable outcome for the lender and the borrower.

Latest Insights