Beartooth Capital II, LP

Beartooth Capital is a private investment management firm whose mission is to generate strong investment returns, real conservation results and community benefits. The firm seeks to acquire select ranchland in the Western U.S., improve it by restoring habitat, enhancing accessibility, fixing legal flaws, protecting landscapes and undertaking limited, ecologically appropriate development, and then sell it at a profit.

Beartooth Capital currently manages approximately $40 million in capital commitments in Beartooth Capital I, LP (Fund I). To date Fund I has undertaken 17 transactions totaling approximately 22,500 acres in 5 western states. Through Aug. 2013 these investments have generated 17 liquidity events, returning 29% of capital called while retaining ownership of 74% of the acreage acquired. 69% of the proceeds for these liquidity events were derived from conservation sources, with the remaining 31% from private buyers. These liquidity events allowed Fund I to make 9 distributions, including 7 since the recession set in during 2008. In addition to the cash generated by these events, 7 conservation transactions involved the partial donation of conservation easements or parcels of land valued at more than $4.1 million.

Offers to invest can only be made through a private placement memorandum that contains important information about the investment’s structure, risks, fees and expenses.

Financial description

Beartooth Capital searches the inefficient ranch market for undervalued assets with substantial value creation potential. We acquire these properties and fundamentally transform them to create value and minimize risk. We then resell the properties and their assets in whole or in parts. Beartooth's overall investment strategy has these key components:
Invest in undervalued ranches sourced through closely-held relationships and assessed using extensive market data largely unavailable to others due to market inefficiencies
Create value through restoration and by fixing flaws, thereby transforming degraded agricultural properties into high-end ranches with substantial recreational value
Mitigate risk by generating early liquidity through conservation transactions and through other traditional and non-traditional means
Sell each ranch in turn-key condition to high net worth individuals, state/federal governments, non-profits, or agricultural users

Conservation is a competitive advantage, enabling us to mitigate risk and generate stronger returns due to:
High quality deal flow from conservation partners, brokers and others
Significant funding for land protection and restoration
Partnerships providing access to research and market data
Expanded resale opportunities of the land itself as well as other components of the property