Most farmland investment vehicles operate as closed ended funds. Veripath is one of a small number of managers using an open-ended approach to make its farmland investments. An open-ended fund gives investors much greater flexibility over how long they deploy capital and after the contracted hold period they can simply redeem at the prevailing Net Asset Value.
There are several benefits to this approach including 1) the ability of investor to choose the duration that meets their portfolio construction requirements and is not dictated by an arbitrary close-ended wind-up date, 2) long duration and short duration investors can co-exist in the same fund 3) the fund can manage liquidity internally and ideally does not need to transact at the portfolio level reducing costs and cash deployment lags.
