A New York-based investment manager has built a substantial position in Texas Pacific Land Corporation, a company that ranks among the largest private landowners in the United States. Horizon Kinetics, known for its value-oriented and real-asset focused strategy, acquired shares worth approximately $411m, according to a regulatory filing published this week.
Texas Pacific Land, which traces its roots to the 19th-century railway land grants, owns around 880,000 acres across Texas, much of it sitting atop the prolific Permian Basin oil field. The company generates revenue through surface leases, oil and gas royalties, and renewable energy agreements, including solar and carbon capture projects. Its unique business model and limited share count have made it a favourite among long-term, asset-heavy investors.
Horizon Kinetics’ purchase comes amid a broader rotation by some institutional funds toward tangible assets, particularly those tied to energy and infrastructure. Analysts note that Texas Pacific Land offers exposure to both hydrocarbon production and the energy transition, as its acreage is increasingly sought after for wind and solar development. The company has also benefited from rising demand for data centre sites and battery storage facilities in Texas.
For UK investors and pension funds with exposure to global equity markets, the transaction highlights the enduring appeal of land as a hard asset in an environment of elevated inflation and geopolitical uncertainty. While the FTSE 100 has seen modest gains this year, with the index trading around 8,250 points in recent sessions, many British fund managers have been increasing allocations to US real assets to diversify away from UK-centric property and infrastructure holdings.
The move also reflects a growing trend among asset managers to seek out companies with pricing power and resource scarcity. Texas Pacific Land’s shares have historically traded at a premium to book value, reflecting the strategic importance of its land holdings. Horizon Kinetics, which manages around $8bn in client assets, has previously invested in other land-rich companies and royalty trusts, suggesting this purchase aligns with a long-standing conviction rather than a short-term tactical bet.