Halal Food Private Equity: Opportunities and Challenges

Halal Food can reach its full potential with the help of Private Equity, and that potential is very exciting stretching across multiple fast growth sectors, but the industry is held back today by a lack of streamlined regulation and limited available financing where, unfortunately, the story hasn’t changed much since 2016.

‘’ PRIVATE EQUITY: Private Equity is a critical stepping stone for Halal companies to become global multi-billion-dollar enterprises’’
1. The core opportunity is around expansion capital and guidance
There has been notable but limited Private Equity investments to date in Halal Food companies,
but the Halal Food industry can develop substantially, leveraging the growth capital and
value creation support

2. The end state could be a multi-billion-dollar company
Halal Food companies could be multi-billion-dollar, publicly listed enterprises, with
operations in key OIC regions. Private Equity firms would have played a critical role in helping
such companies expand along product categories and into new geographical markets,
addressing core Muslim consumer demand

3. Examples show the role private equity could play for the industry

There are several analogs that inform how Private Equity firms have played a critical role
in the food industry
↘↘ Private Equity investment has helped accelerate the growth of Kosher food
companies: Empire meat is one of the leading Kosher poultry suppliers in the U.S. and
was acquired by a consortium of private investors in 2003, and following Private Equity
ownership, doubled production capacity by 2009, modernizing and expanding its
production line, resulting in an annual revenue of over $100 million.
↘↘ Notable investment has occurred in the high growth organic food industry, with
Halal a reasonable next step: U.S.-based North Castle Partners invested in Sprout
Organic Foods Inc., a distributor of premium organic foods primarily serving the baby /
toddler market in 2015
↘↘ Halal is becoming an area of focus for Private Equity firms: Notable investments include
U.K.-based Janan Halal Meat which secured $30 million in investment led by Kingsley
Capital Partners in 2016,26 and Kudu which secured a $200 million investment by The
Abraaj Group in 2015 .


Bron: Thomson Reuters

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