Cole Gilliam Parks grew up on a cattle ranch in North Central Texas, learning early that the land has a rhythm of its own. Today, as president, CEO and co-founder of Southwestern Group, a boutique private equity firm focused on financial services, real estate and agriculture, Parks is making the case that dairy cows belong in a diversified investment portfolio — right alongside stocks, bonds and real estate.
The pitch is built on a structure most investors have never heard of: livestock leasing.
“It really is a win-win for both the investor and the lessee,” Parks says. “As a producer and an investor, I really love the livestock leasing program as an asset class.”
The mechanics are straightforward, even if the setting is unusual. Investors acquire dairy cattle — typically heifers or cows used for breeding — and lease them back to a farm operator on a triple-net basis. The operator is responsible for all costs: feed, labor, healthcare and facilities.
