Founding partnership
100 Partnership Spaces. US$6,500 each. One farm with full title deeds.
DAC is making available 100 Founding Partnership Spaces at a once-off capital contribution of US$6,500 per space, a target agricultural capital raise of US$650,000. Founding Partners hold a proposed 80% of the equity; Founders and Management hold 20%.
At a glance
The proposed structure
- Partnership Spaces
- 100
- Capital per space
- US$6,500 (once-off)
- Target agricultural capital
- US$650,000
- Administration fee
- US$300 per partner
- Multiple spaces
- Permitted
- Founding Partners' equity
- 80%
- Founders & Management
- 20%
- Indicative equity per space
- 0.8%
- Farm requirement
- Full title deeds
- Annual US$6,500 contribution
- No
Ownership
How the equity is split
The 100 Partnership Spaces collectively represent the Founding Partners' proposed 80% equity pool, so — subject to final legal structuring — one Partnership Space represents an indicative 0.8% of DAC. Founders and Management collectively hold 20% in recognition of project origination, agricultural expertise, model development, partner mobilisation and strategic leadership.
Multiple Partnership Spaces
A Founding Partner may acquire more than one Partnership Space, subject to availability and final company and shareholder documentation. DAC may set limits on the number of spaces held by any single person or connected group to preserve the collective ownership philosophy.
| Spaces | Capital | Indicative equity |
|---|---|---|
| 1 | US$6,500 | 0.8% |
| 2 | US$13,000 | 1.6% |
| 3 | US$19,500 | 2.4% |
| 5 | US$32,500 | 4.0% |
| 10 | US$65,000 | 8.0% |
DAC offers 100 spaces rather than requiring exactly 100 individual partners.
Fees
US$300 once-off administration & placement fee
Each new Founding Partner pays a separate US$300 once-off Administration & Placement Fee, in addition to the Partnership Space contribution. It is payable once per partner, not once per space, where additional spaces are held by the same approved person or entity. The fee does not purchase equity and does not reduce the US$650,000 agricultural capital target. The previous percentage-based placement fee does not apply.
What the fee covers
Partner onboarding, administration, communications, documentation, project marketing and presentations, mobilisation, due-diligence and professional coordination, capital-raising activity, partnership management systems, database administration and project establishment costs.
If exactly 100 individual partners each acquire one space, total receipts would be US$680,000: US$650,000 capital plus US$30,000 administration fees.
Capital deployment
Where partner capital goes
Farm acquisition
Purchase of a commercial agricultural property with full, verified title deeds.
Legal & due diligence
Conveyancing, title verification, independent valuation and professional advice.
Irrigation & water
Boreholes, dams, pivots and drip systems to de-risk production from rainfall.
Machinery
Tractors, implements and harvesting capacity matched to hectares under crop.
Crop establishment
Seed, fertiliser, crop protection, labour and fuel for the first cycles.
Infrastructure & reserves
Storage, sheds, power, insurance and working-capital and contingency reserves.
Capital is deployed according to a Board-approved farm acquisition and development budget. Final expenditure depends on the farm selected and the approved business plan.
Title & tenure
Full farm title deeds
A core DAC acquisition principle is to secure a commercial farm with full title deeds, ordinarily registered in the name of DAC or an appropriate wholly owned property-holding company. No acquisition should complete before satisfactory legal due diligence: qualified professionals verify registered ownership, authenticity of title, encumbrances, mortgages, caveats, claims, boundaries, access rights, permitted land use, water rights, existing leases and environmental and regulatory matters.
Independent valuation
An independent professional valuation is obtained before purchase, considering land value, location, soil quality, water resources, irrigation, buildings, infrastructure, improvements, production history, market comparables and productive potential. The farm is only purchased after legal due diligence, valuation, agricultural and water assessment, financial feasibility and Board approval.
Returns
Dividend policy and entitlement
- Priorities first. Profits provide for tax, operating expenses, working capital, the next crop cycle, debt, insurance, maintenance, contingency reserves and approved capital expenditure.
- Indicative policy. The Board may then recommend dividends, with a possible long-term target of 30%–50% of distributable profits depending on financial position and growth requirements.
- Entitlement. Dividends follow legal shareholding; within the Founding Partners' 80% pool, entitlement corresponds to the number of Partnership Spaces held.
- Once-off contribution. The US$6,500 is once-off, not an annual subscription. Subsequent operations are intended to be financed from agricultural revenue, retained profits and reserves.
- Exit. Farmland is relatively illiquid, so DAC cannot guarantee immediate repayment of capital. Transfers are governed by the Shareholders' Agreement, including pre-emption rights, family and trust transfers, valuation, death and inheritance.
No guaranteed return
No founder, director, employee or representative may promise a guaranteed dividend, annual return, crop yield, selling price, farm valuation increase, exit price or capital appreciation. Principal risks include drought, excessive rainfall, crop disease and pests, water and electricity interruptions, equipment failure, input and commodity price movements, labour and transport disruption, currency movements, regulatory and economic change, management performance, counterparty failure and uninsured losses.
Read the full proposed terms