Manna Tree Seeks $500M Fund Following 120% Gain on Vital Farms
Manna Tree Partners is seeking $500 million for its third wellness-focused fund after generating profits on its $390 million second fund, bringing its assets under management to approximately $736.6 million. Its investment in Vital Farms delivered nearly 120% returns over 16 months prior to the 2020 IPO, highlighting strong value creation.
1. Fundraising Plans
Manna Tree Partners is targeting $500 million for its third fund, focusing on wellness and lower-middle-market food and nutrition companies. The firm aims to leverage its track record to attract investors despite a dealmaking slowdown and geopolitical uncertainty.
2. Previous Vital Farms Investment
In 2019, Manna Tree invested in Vital Farms and realized nearly 120% gains over a 16-month holding period before the company’s 2020 IPO. This successful exit helped its second fund match its $390 million fundraising total in realized profits.
3. Strategy and Assets
Backed by David Rubenstein, Manna Tree oversees about $736.6 million in assets and concentrates on wellness-driven businesses, including Plant People and Health-Ade. The firm emphasizes smaller transactions in the lower-middle market to reduce competition and maintain steady deal flow.