Income & Growth Fund I
United States of America
Last updated 13 May 2020, by Impactyield.
Developed countries (203) / More developed regions (202) / More developed regions (North America, Asia & Oceania) (153) / United States of America (112)
Rock & Water Capital’s Income & Growth Fund I seeks to provide investors with market-rate value-added total return levels in the resource land space through a host of environmentally sustainable investment strategies, including sustainable land-management practices, conservation easements, carbon credit generation, water rights transactions and others. Given the rapid change in each environmental strategy, Rock & Water is excited to offer a diversified environmental product that reduces the risk inherent in investing in rapidly developing markets.
The fund is targeting an annual 1-3% cash yield to investors, net of fees and expenses, and a total return to investors of 14-16%, net of fees and expenses. Planned targeted product types include timber, agriculture and ranching properties, and the fund plans to pursue investments in the Southeast (GA, TN and NC primarily) and the Northern Rockies (ID, MT and WY). The firm is targeting a raise of $40M and will include a 2% asset management fee on committed capital and a 20% back-end promote over an 8% preferred rate of return. The partners of Rock & Water Capital plan to commit 2% of the fund, up to $1M, plus any active purchase contracts.
The Income & Growth Fund I is a continuation of the investment strategy that Rock & Water Capital has pursued successfully since 2005. Since inception, the firm has had realized IRRs ranging from 16.2% to 90.2% on each investment and a realized aggregate investment multiple of 1.6x.
Rock & Water is targeting resource properties—timberland, farmland or ranchland—that provide both an annual income and strong capital appreciation for its Income & Growth Fund I. On each investment, the firm plans to customize an environmentally sustainable land-management strategy to maximize total return while supporting the firm’s commitment to conservation and the environment. Rock & Water plans to exit the majority of its investments as higher-priced conservation or recreational property.
The Rock & Water Income & Growth Fund I targets a total return IRR, net to investors, of 14-16%, with an annual yield to investors, net of fees and expenses, of 1-3%. Rock & Water is targeting to raise $40M, with the firm contributing 2% of committed capital (up to $1M in total) and is including a 2% annual management fee and a 20% back-end promote over an 8% preferred rate of return.
Rock & Water has a targeted investment horizon, once the fund closes, of 2-3 years, with a 5-7 year holding period and 3 1-year extensions. The fund will be a diversified holding, with 8-12 properties once fully invested, across a mix of geographies (with a primary focus on the Southeastern US and Northern Rocky Mountains), product types (timber, ranch, farm) and environmental components (conservation easements, carbon credits, mitigation banking, water rights trading, etc).
of track record
the year funded
Key performance indicators
Asset manager: Rock & Water Capital Partners
Product track record: Fund has 12 years of track record
Target IRR: 15%
Committed Capital: 0 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - no committed capital
Inception year: 2011
Vintage year: n.a.
Target region: Developed countries, More developed regions, More developed regions (North America, Asia & Oceania), United States of America
Target close date: 01/09/2011
Product term: 7 years with 2 1-year extensions
Assets under management: 40,000,000 USD (US Dollar)
Investment size: Min: 1,000,000; Max: 12,000,000; Avg: 4,000,000
Co-investment policy: LPs have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 2%
Carried interest: 20%
Hurdle rate: 8%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: 4045389940.00
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Rock & Water is committed to the conservation of pristine ecosystems in its investment markets and plans to incorporate environmentally sustainable land practices in each of its investments. The primary impact of the Income & Growth Fund I will be conservation: Rock & Water expects to incorporate conservation into all of the fund’s investments. Additional environmental impacts will include, depending on the investment, habitat reconstruction and rehabilitation, water quality improvements, biodiversity improvements and other environmental work. Rock & Water intends to achieve these environmental goals and its targeted financial return by actively pursuing ecosystem payment opportunities.
The Rock & Water team is most excited, however, about its impact on the broader land-owner community. Through its fund, Rock & Water believes it will help prove the financial case for broad-based environmental efforts and attract significant investment capital to the space--thus exponentially expanding the impact that Rock & Water alone could have. Once the land owner community sees that environmentally sustainable practices are the route to highest return, broader adoption of environmentally sustainable land practices is inevitable. Thus, investments in the Rock & Water Income & Growth Fund I will not only generate a strong financial return and have an immediate environmental impact, but will also have an environmental impact well beyond the scope of Rock & Water’s investment activity.
NCREIF Timberland and Farmland Index