With the growth of the food and agriculture sector, there has been increasing interest from investors looking to allocate capital in this area. Food focused investment funds aim to provide exposure to the food value chain while generating competitive returns. This article provides an overview of major food investment funds, examining their investment strategies and portfolio companies. Understanding the landscape of food focused private capital can help investors identify attractive opportunities to gain exposure to the food and agribusiness industry.
Notable global food investment funds tapping into agriculture technology
Several prominent investment funds are focused on food, agriculture, and agritech startups that are innovating throughout the food supply chain. Acre Venture Partners is a $130 million food and agriculture tech venture capital firm based in the US. It invests globally in startups developing breakthrough technologies to sustainably transform the food system. Innovative food companies in its portfolio include AeroFarms, which builds vertical indoor farms, and Mambo Beverages developing ready-to-drink cannabis beverages. S2G Ventures manages over $200 million for investments into entrepreneurs developing technologies, ingredients, foods and brands that meet shifting consumer demands. It has invested in alternative protein companies like Beyond Meat and vertical farming business Plenty. Rabo Food & Agri Innovation Fund targets food and agritech companies in Europe and Israel, focused on technologies to enhance productivity, sustainability, and transparency across food supply chains. It has backed startups like Migros, developing supermarkets to reduce food waste, and Steak-umm, producing sliced beef from animal cells. These funds exemplify how investors are seeking opportunities in food and agriculture technology to both drive sustainability while pursuing attractive returns.
Asia and emerging markets food sector funds
In addition to funds in the US and Europe, there has also been growing investor interest in food and agriculture in Asia and emerging markets. Kharis Capital runs a US$100 million fund focused on the food sector in Southeast Asia, investing in distribution networks, retail brands, and supply chain enablers. Its portfolio includes RedMart, an online grocer in Singapore, and Cropital, a crop financing platform in the Philippines. India’s Omnivore manages around US$130 million for agritech investments that improve farmer livelihoods while meeting food demands sustainably. Key investments include milk supplier Country Delight and DeHaat, an online platform providing farm services. UAE-based AgFunder runs a global emerging markets food and agri-tech venture capital fund and has invested in Indian aquaculture startup eFishery. Global Environment Fund backs sustainable agriculture, forestry, and aquaculture in emerging markets across Africa, China, and Brazil. It targets solutions for smallholder productivity, sustainable beef production, and reducing food loss and waste. These funds represent how investors are tapping into underserved food system opportunities in growth markets like Asia and emerging economies.
Private equity firms raising food & agriculture focused funds
Several prominent private equity firms have raised sector-specific funds dedicated to food and agriculture investments. Goldman Sachs Asset Management’s $300 million Nourish Fund focuses on high-growth businesses enhancing sustainability, health, and transparency across food supply chains globally. It has invested in Oatly, a leader in oat-based dairy alternatives, and hazelnut farming company Ferrero Group. In 2021, KKR closed a $1.1 billion food and agriculture fund, targeting value-added propositions supporting sustainable farming, waste reduction, and innovative brands. Its investments include Vital Farms, a pasture-raised food producer, and Authentic Brands’ food businesses like Greg Norman meats. Blackstone raised a US$3 billion fund dedicated to global investment opportunities in agriculture technology and infrastructure. Its holdings include vertical farming company Bowery and animal nutrition biotech Anivive Lifesciences. These large private equity funds signal significant investor confidence in the growth prospects and innovation occurring across the food system.
Food focused funds deploying variety of sector-specific strategies
Examining major food investment funds provides insights into the variety of sector-specific strategies investors are deploying. Many funds concentrate on early stage venture capital, backing pioneering food technology startups and aiming to commercialize innovation. Other later stage private equity funds acquire more established food companies and assets, to help scale them into larger platforms. Funds focused specifically on sustainable food production, distribution and consumption are positioning for the growing consumer and industry emphasis on these issues. At the same time, funds centered on key geographies like Asia, emerging markets and global south reflect investor confidence in food sector development and formalization in these growth regions. As the food and agriculture sector continues to evolve, investment managers will continue tailoring strategies and offerings to tap into the most compelling opportunities.
Food and agriculture focused investment funds are proliferating, as investors seek to allocate capital in this vital sector undergoing transformation. Examining major global funds provides insights into key investment strategies, from early stage agritech venture capital to private equity buyouts of established food companies. With rising emphasis on food security, sustainability and health, targeted food investment funds are likely to continue tapping into specialized opportunities up and down the food value chain.