The Obama administration has launched a $10 billion infrastructure fund intending to give institutional investors opportunities to invest in rural development across the country.
The fund is backed by CoBank, a cooperative bank and member of the government-sponsored lending organization Farm Credit System, which also pledged the initial $10 billion commitment. The White House said Capitol Peak Asset Management will be managing the fund and in charge of recruiting more investors.
“Many major investors in urban centers aren’t always aware of the significant investment opportunities in rural communities,” Tom Vilsack, US Department of Agriculture secretary, said.
“[It] represents a new approach to our support for job-creating projects across the country,” Tom Vilsack, US Department of Agriculture secretary and chair of the White House Rural Council, said. “We know where investment opportunities exist, so we are in a position to help promote these projects among investors.”
Through the new fund, asset owners would be able to invest primarily in rural community facilities, Vilsack continued, including water and wastewater systems, energy projects, food systems, and infrastructure.
The White House said the fund would allow institutional investors access to opportunities in rural development they traditionally lack.
“Many major investors in urban centers aren’t always aware of the significant investment opportunities in rural communities,” Vilsack said. “If the White House Rural Council can help facilitate even a small portion of the enormous amount of available investment capital into rural places, we can grow key industries and create jobs in rural and urban areas from coast to coast.”
The Rural Infrastructure Opportunity Fund is immediately open for investors to add to the initial investment, the White House said.
The new venture is part of an ongoing effort by the Obama administration to incentivize private investments in rural communities and US infrastructure.
In April, the US Department of Agriculture announced a $150 million investment initiative to facilitate private equity investments in agriculture-related businesses. And just last week, President Barack Obama signed the Build America Investment Initiative, which includes a “one-stop shop” investment center at the Department of Transportation to facilitate financing in unconventional projects.
“With new efforts like this we can move beyond existing programs and help encourage substantial private investment in projects that grow the economy and improve quality of life for millions of Americans,” Vilsack said.
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