The U.S. Rural Infrastructure Opportunity Fund
The U.S. Rural Infrastructure Opportunity Fund is a public-private partnership between CoBank, Capitol Peak Asset Management (CPAM) and the U.S. Department of Agriculture. The purpose of the fund is to serve as a new source of capital for rural infrastructure projects, promoting financing for infrastructure projects in rural America and the resulting creation of jobs in rural communities.
The fund is designed to complement existing government loan and grant programs by making debt investments in a wide range of projects in America’s rural communities. Its activities will include:
- Recruiting new sources of private capital to support rural infrastructure projects;
- Serving as a co-lender for borrowers financing projects where the government’s program limits or resource constraints warrant the fund’s involvement; and,
- Private lending in support of projects capable of meeting market terms.
Target investments will include rural community facilities, water and wastewater systems, rural energy projects, rural broadband and agribusiness. As anchor investor in the fund, CoBank has committed $10 billion of balance sheet capacity to lend alongside these investments, subject to CoBank lending authorities and underwriting requirements. CPAM, an independent asset management firm, will manage the fund.
- Presidential Executive Order on Promoting Agriculture and Rural Prosperity in America
- United States Department of Agriculture Press Release
- CoBank Press Release
- Fact Sheet: Increasing Investment in Rural America (White House Rural Council)
- Capitol Peak Asset Management