November 17, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

The UK has a new specialist investment manager in Isara, which has just announced the launch of its maiden fund – a £300 million (US$354.7 million) investment vehicle geared to improve the efficiency, quality, and sustainability of food supply systems across the UK, Ireland, and Western Europe. 

Fully backed by the Sadel Group – a private family office actively investing and operating in the real estate, cold storage, and energy sectors in the UK and Western Europe – the Isara team, led by Michael Rice, will execute their own separate acquisition and investment thesis.

This thesis will focus on investment opportunities in food production and distribution companies with the goal of stabilizing the current ecosystem experiencing instability due to rising inflation, COVID-19, Brexit, and a growing commitment to sustainability.

Having the backing of Sadel Group will lend Isara the ability to leverage that group’s expertise in its existing businesses to help implement value creation plans where needed.

That’s not to say Isara doesn’t have their own set of extensive expertise working with businesses and management teams across the food sector, including Eight Fifty Food Group, bringing hands-on knowledge and a network of specialist advisors to support portfolio companies.

“We are on the cusp of a potential food crisis in the United Kingdom,” said Rice. “We believe that existing food production and supply chains have become inherently inefficient, and are under unsustainable levels of strain from a number of factors including the coronavirus crisis, increasing energy costs, food inflation and financial market volatility.”

Isara noted that this fund will primarily focus on the acquisition of majority stakes, but will employ a flexible approach that will facilitate investment in opportunities where others cannot invest. It also will enable Isara to take a longer-term view compared to traditional private equity in the field, meaning Isara will be able to support more capital-intensive projects that deliver radical improvements to the food industry – something it says is beyond most investors.

“At Isara, our fund will be used to champion increasing the efficiency and sustainability of food systems, seeking to address the challenges of long-term underinvestment, labor supply challenges, supply chain security and sustainability,” said Rice. “Not only is this good business, but this will also create seismic benefits for the wider economy and, ultimately, the sector’s impact on the planet.”

This entire strategy and thesis will be guided by identifying potential portfolio companies with the largest promise to deliver impacts aligned with ESG, and most able to positively address the significant obstacles facing food supply chains.

“With the financial backing and industry expertise of Sadel Group, we are well-placed to take the long-term view that the sector sorely needs,” noted Oliver McRae, investment director, Isara. 

“We are passionate about driving fundamental change in business through establishing positive and long-lasting partnerships with companies and their stakeholders. We look forward to seeing this positive impact realized in the near-term and beyond.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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