SAN
FRANCISCO, June 26, 2024 /PRNewswire/ -- The
Rise Fund, the multi-sector strategy of TPG's global impact
investing platform, today announced it has signed definitive
documentation to lead an investment of over $200 million in Foodsmart, the leading
telenutrition provider and food benefits management platform in the
US. Terms of the transaction were not disclosed.
Founded in 2010, Foodsmart supports those facing chronic
disease and food insecurity by partnering with health plans and
providers to give patients access to personalized and affordable
healthy eating options. Foodsmart combines virtual nutrition
counseling through the largest standalone network of Registered
Dietitians in the US, with an integrated digital food benefits
management platform through which patients can plan personalized
healthy meals, order quality food through grocers nationwide and
local medically tailored food partners, apply for SNAP benefits,
and learn ways to buy good food affordably. Today, the Company
serves over 2.2 million members through contracts with leading
regional and national Medicaid Managed Care Organizations, Medicare
Advantage plans, commercial insurers, and over one thousand
employers.
"We are excited to partner with TPG's Rise Fund given their
strong track record scaling the reach of organizations that create
sustained impact for people of all income levels–including Medicaid
members and blue collar workers," said Jason Langheier, MD, MPH, the CEO and Founder of
Foodsmart. "We support all people, regardless of economic status,
with nutrition counseling and food buying support that changes
their access to quality food, eating habits and health outcomes for
the long run."
Forming healthier eating habits requires time and guidance. It's
a challenge for individuals who are already struggling with chronic
illness, who work multiple jobs, or are otherwise unable to cook
healthy meals for themselves. Foodsmart is fundamentally
solving these challenges by integrating FoodSMART telenutrition
with a FoodsMART food buying marketplace that bridges access to
high quality groceries, meals and food as medicine partners,
enabling sustained healthy eating and improved outcomes for
families, and ROI for payers.
Dr. Langheier added, "TPG Rise has expertise supporting
innovative and needed solutions for underserved patients to become
permanent fixtures in the fabric of healthcare. We look forward to
working together to expand our capabilities, our reach and our
impact."
"Diet-related diseases and food insecurity are estimated to cost
the US over $1 trillion per year, and
disproportionately affect low-income and minority populations,"
said Tom Verghese, Business Unit Partner and Healthcare Lead
for The Rise Funds. "Foodsmart's unique virtual care platform meets
these challenges by providing access to the largest network of
Registered Dietitians in the US alongside medically tailored
nutrition guidance to improve metabolic and whole body health.
Foodsmart has proven to be the category leader from our
longstanding thematic focus on the Foodcare space."
Foodsmart has completed numerous matched-pair case control
studies and randomized control trials in partnership with leading
health plans and academic institutions, showing $24 to $58 per
member per month savings in year one, and a significant improvement
in HbA1c. Over the last decade, Foodsmart has published many
studies showing a reversal of food insecurity and reduced rates of
obesity, diabetes, hypertension and hyperlipidemia– especially for
lower income populations, but the hallmark of Foodsmart is that
members keep improving their outcomes even 3 years later. Foodsmart
is also supporting patients in their effective use of higher cost
interventions such as GLP-1s and bariatric surgery, by helping them
improve their food buying environment and eating habits before,
during, and after those interventions, to enable the opportunity to
sustain their health improvements for the long run.
Foodsmart also continues to partner with leading health systems
like Advocate Health, Intermountain Health, and Memorial Hermann
Health System, collectively representing tens of millions of
patients. Provider led "foodscripts," where primary care physicians
refer their patients to Foodsmart dietitians and guide them on
healthy food choices–sometimes subsidized by health plans–to
address their conditions, are a key component of the workflow
Foodsmart is enabling with provider partners nationwide.
The investment furthers The Rise Fund's focus on backing
high-performing businesses that are expanding access and delivering
demonstrably positive health outcomes for underserved and
low-income demographics. The transaction is expected to close in
July 2024 and remains subject to
customary closing conditions.
About Foodsmart
Foodsmart, is the largest telenutrition and food benefits
management platform—aka "Foodcare"—in the US, backed by the largest
national network of Registered Dietitians. Foodsmart's platform
helps patients with consistently healthier food choices, lasting
behavior change and long-term positive health outcomes. Foodsmart's
digital platform guides members through a personalized journey to
eating well while saving them time and money, through seamlessly
integrated dietary assessments and nutrition counseling,
personalized meal planning, SNAP enrollment, and budget-friendly
online food ordering options. Learn more at www.foodsmart.com.
About The Rise Funds
The Rise Funds are a core pillar of TPG Rise, TPG's global
impact investing platform. Founded in 2016 by TPG in partnership
with Bono and Jeff Skoll, The Rise
Funds invest behind impact entrepreneurs and growth-stage, high
potential, mission-driven companies that are focused on achieving
the United Nations' Sustainable Development Goals. The Rise Funds
deliver capabilities and expertise across a wide variety of sectors
and countries at scale, focusing on opportunities in climate and
conservation, education, food and agriculture, financial inclusion,
healthcare, and impact services.
With approximately $19 billion in
assets across The Rise Funds, TPG Rise Climate, the Evercare
Health Fund, the TPG Rise platform is one of the world's largest
private markets impact investing platforms committed to achieving
measurable, positive social and environmental outcomes alongside
competitive financial returns.
For more information, visit therisefund.com or @therisefund
on Instagram.
Melissa Mowery
Director
VSC for Foodsmart
foodsmart@vsc.co
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SOURCE Foodsmart