Investment firm Isara Capital Management has launched a £300m debut fund as part of plans to transform the “inherently inefficient” food supply chains across the UK, Ireland and Western Europe.
Announcing the venture, the Leeds-based investment firm said this week it wants to help stabilise the food supply chain which has suffered from a series of shocks including rising inflation, the Covid-19 pandemic and Brexit.
The fund is backed by the Sadel Group, another Yorkshire-based firm which invests in the real estate, cold storage, and energy sectors.
Isara partner Micheal Rice, who heads up the venture, has over ten years’ experience in the food, logistics and business service sectors.
Rice said investing in food supply chains is essential right now. He said: “We are on the cusp of a potential food crisis in the United Kingdom.
“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."
He added: “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, labour supply challenges, supply chain security and sustainability.
“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.”
Oliver McRae, investment director at Isara, commented: “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.
“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 realised in the near-term and beyond.”
