Why are Institutional and Philanthropic Investors Focusing on Food? With Caitlin MacLean and Holly Freishtat of The Milken Institute
May 16, 2024
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Caitlin MacLean, Senior Director of Innovative Finance, and Holly Freishtat, Senior Director at Feeding Change, dive into why institutional and philanthropic investors are drawn to food systems. They discuss the surge in plant-based innovations and the interconnectedness of food systems, health, and finance. The conversation highlights the urgency for sustainable practices amid climate challenges and showcases investment opportunities that blend capital for transformative impacts. They also share personal reflections and snack choices, making the discussion relatable and engaging.
Institutional and philanthropic investors are increasingly focusing on food systems to address critical global challenges such as climate change and human health.
The Milken Institute's Feeding Change initiative highlights the need for innovative financing to transform food systems and ensure public health resilience.
Blended capital is a strategic funding approach that combines diverse financial sources to support the growth of sustainable agricultural businesses.
Deep dives
The Urgency of Plant-Based Solutions
The conversation highlights the critical role of plant-based solutions in addressing major global challenges like climate change, human health, and food security. The shift away from animal products is seen as a significant trend that can lead to a more sustainable food supply and positively impact environmental health. This movement is not only viable as a solution but also represents substantial economic opportunities for investors and businesses in the plant-based sector. The discussion underscores that investing in plant-based innovation is crucial for both financial growth and the well-being of people and the planet.
Feeding Change Initiative
The Feeding Change initiative at the Milken Institute aims to create a more sustainable and equitable food system by bridging the gaps between finance, health, and policy. It emphasizes the need for appropriate financing to transform food systems, focusing on social and financial capital as levers of change. The discussion reveals that a healthy society is intrinsically linked to a sustainable food supply, and failures in the food system can have large societal costs, including increased healthcare expenses. By advocating for better financing and collaboration, the initiative seeks to ensure resilience within food systems and ultimately improves public health.
The Impact of COP28 on Food Systems
COP28 marked a watershed moment in global environmental dialogues, integrating food systems as a crucial element of climate strategies. Notably, the establishment of a dedicated food pavilion at COP28 showcased the importance of addressing food in the climate agenda, with over 160 nations recognizing the necessity for sustainable and resilient food systems. This shift illustrates the increasing acknowledgment that food systems are a part of the climate solution, requiring significant investment and collaborative efforts to align with financial markets. The collective efforts seen at COP28 indicate a growing awareness of the urgency to adapt food systems in response to climate change.
Blended Capital and Investment Dynamics
The discussion introduced the concept of blended capital as a key strategy for financing food systems transformation, combining traditional financial investments with philanthropic and governmental support. This innovative approach allows for tailored funding mechanisms that meet the unique needs of both investors and agricultural businesses. The challenge lies in educating investors about the potential opportunities within food systems and simplifying investment structures to attract more capital. The goal is to enable wider participation in the market by demonstrating that food systems can provide significant upside potential, both financially and environmentally.
Proactive vs. Reactive Strategies in Food Systems
The dialogue emphasizes the importance of proactive strategies over reactive responses to food system challenges, highlighting the necessity for early intervention and planning. The lessons learned from recent global disruptions such as the pandemic illustrate that resilient food systems are vital for societal stability and health. The conversation advocates for investments in infrastructure and technology that enhance the efficiency of food supply chains while reducing their environmental impact. By recognizing the urgency of these issues now, stakeholders can leverage market dynamics to pave the way for a more sustainable and secure future in food production.
Senior Director of Innovative Finance at the Milken Institute, Caitlin MacLean and Senior Director at Feeding Change, Holly Freishtat join Elysabeth on the Plantbased Business Hour to discuss blended capital and why institutional and philanthropic investors are focusing on food.
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For plant-based media/branding consulting and public speaking, reach out at elysabeth@elysabethalfano.com. For more information, visit ElysabethAlfano.com.
For more PBH, visit ElysabethAlfano.com/Plantbased-Business-Hour.
Archive only. VegTech™ LLC ceased providing investment‑advisory services, and the EATV ETF was liquidated on May 7 2025. No investment advice is offered.
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