By Lynda Kiernan, Global AgInvesting Media
Based in Philadelphia, TPP Capital Holdings is a Black-led social impact private equity fund manager, real estate developer, and urban healthcare investor dedicated to improving the health and welfare of residents in Black and Brown neighborhoods through improving access to health food.
As part of this mission, and to reduce health disparities and the undue chronic medical conditions that disproportionately affect Black and Brown Americans, made clear by COVID-19, the firm announced the launch of the $20 million Urban Agriculture and Food Investment Fund.
Under its mandate, Fund I will make direct place-based private equity investments in agribusinesses, indoor vertical farming or greenhouse operations, agriculture, farmland development, and health-focused food and beverage brands that are Black or Brown-owned, and are located in federally qualified opportunity zones throughout the U.S.
“In the middle of today’s public health crisis, our raise will allow us to provide scalable solutions and build back better – prioritizing health through stronger businesses and buildings in food and wellness desserts prevalent in Black and Brown communities in federal qualified opportunity zones,” said Anthony B. Miles, TPP Capital Holdings principal and fund manager of Tioga District Urban Agriculture OZ Fund,
As a growth capital vehicle, Fund I will target family offices, high-net and ultra-high-net worth individuals, professional athletes, institutional investors, celebrities, and entertainers, with expectations that it will provide a unique investment opportunity for women and people of color who are looking to commit capital in ways that will support businesses with Black and Brown ownership participation.
Miles explained, “One the keys to this raise are to align our Fund with patient capital that understands our quadruple bottom line approach of saving money on taxes against ordinary income or a recent capital gains event, sustainable and verifiable social and economic impacts along with financial returns to our investors.”
So far, TPP Capital has made two capital commitments totaling $7 million through Fund I:
Vertical Harvest LC3 ($2 million) – Based in Jackson, Wyoming, Vertical Harvest is a profitable and sustainable hydroponic farming operation that addresses both food and job insecurity through hiring underemployed people with a focus on those with intellectual and physical disabilities to grow and produce fresh food on a year-round basis.
The capital will be used by the company to fund a five-year expansion plan that includes the building of 10 new 70,000-square-foot greenhouses on less than three acres of land each that will create as many as 550 jobs for underserved populations and produce more than 10 million pounds of fresh produce per year.
Vertical Harvest Philly ($5 million) – Located in Upper North Philadelphia’s Tioga neighborhood near Temple University, this investment will fund the construction and operation of a 70,000-square-foot greenhouse that aims to secure WELL Certification and the WELL Health Safety Rating. The site will also include 50 affordable housing units for farm workers.
“TPP’s investment in Vertical Harvest, and their food industry expertise that they bring will greatly expand our footprint and enable us to gain significant market share in a fast-moving vertical farming market that is rooted in our foundational values of inclusivity, sustainability and community resilience,” said Nona Yehia, CEO, Vertical Harvest.
A third equity investment that was not fully disclosed is in urban farming development sites with affordable housing for farm workers and Black and Brown-owned food ventures, according to a statement.
“TPP principals have 25 years of food industry experience in food science, food ingredients, food processing, food technology, packaging, and food marketing,” said Clinton Bush, principal and co-founder, TPP Capital. “With strong relationships with food ingredient suppliers, food scientists, food companies, and food CEOs, and executives TPP is well positioned for success.”
Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com
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