July 26, 2024

By Gerelyn Terzo, Global AgInvesting Media

Manna Tree Partners, a global private equity firm based in Vail, Colorado, and focused on nutrition, has taken a controlling interest in Verde Farms, a Woburn, Massachusetts, company that produces 100 percent grass-fed and pasture-raised beef. As a follow on to a minority $15 million stake taken in 2020, Manna Tree is keeping the financial details close to the vest in this round. With the investment, Manna Tree is helping to position Verde Farms for expansion in the $33 billion U.S. beef market, owing to strengthening demand for healthier and more sustainable protein options.

Manna Tree’s allocation comes in a market environment in which the global PE and VC communities sat on $2.62 trillion in dry capital in H1 2024, a fresh all-time high, per S&P Global Market Intelligence and Preqin data. The tally is up over $49 billion compared with year-end 2023. KPMG’s head of PE, Glenn Mincey, reportedly predicts that when the deal market returns, it will come back with a vengeance.

Verde Farms plans to direct the proceeds from Manna Tree’s investment toward scaling operations, product innovation and expanding its industry footprint. Verde Farms CEO Brad Johnson stated, “I’m particularly excited about building on our recent successes, including our strong velocities and significant increases in store count and distribution points.” Currently, the Verde brand is available at high-profile retailers such as Amazon Fresh, Target, Harris Teeter, and Albertsons.

According to the terms of the deal, Verde Farms Founder Dana Ehrlich is retaining his equity ownership stake but stepping down from his operating role, he confirmed to GAI News.

Founded in 2018, Manna Tree boasts over $400 million in AUM through which it backs innovative companies that produce, process and distribute healthy foods. Manna Tree’s portfolio comprises approximately one-dozen investments that in addition to Verde Farms include pasture-raised egg company Vital Farms and indoor ag company Gotham Greens.

Manna Tree Co-Founder and Managing Partner Gabrielle Rubenstein stated, “Since our initial investment into Verde Farms, we have been continually inspired and impressed by its commitment to sustainability and more environmentally conscious protein options. We have worked very closely with the company to further strengthen its team and go-to-market strategy, and we’re excited to leverage our expertise and network to help Verde expand its reach and impact in the better-for-you food space.”

For nearly two decades, Verde Farms has been “delivering premium beef sourced from cattle that freely graze in pastures throughout the year—never exposed to antibiotics or added hormone,” the announcement states. Last year, the company achieved Land to Market’s regenerative agriculture verification status.

Worth $4.4 billion, the better-for-you (BFY) meat industry has been growing by leaps and bounds, having exploded with a 15 percent growth rate over the last half decade, according to Nielsen data cited by the companies. Verde Farms has experienced an 83 percent increase in overall distribution points in the past two years, representing a 51 percent jump in dollar sales year-over-year.

Verde Farms said it is committed to its mission of delivering high-quality organic beef using ethical farming practices amid a desire to create positive change in the food industry.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.