Morgan Stanley Climate Fund Invests in Sustainable Nutrition Company Huel

Morgan Stanley Investment Management (MSIM) announced an investment in sustainable nutrition company Huel, aimed at supporting the company’s global expansion and reinforcing its sustainability agenda.

The investment is the second to be made by MSIM’s 1GT climate-focused strategy. Launched in November 2022, 1GT is a new growth-oriented private equity platform aimed at investing in climate solutions companies that will eliminate 1 billion tons (1 gigaton) of CO2 emissions from the date of investment through 2050.

Morgan Stanley announced in May 2023 that it has raised $500 million at the first close of 1GT, and the platform made its first investment earlier this year, leading a $50 million capital raise for supply chain sustainability data provider Everstream Analytics.

Vikram Raju, MSIM’s Head of Climate Private Equity Investing and 1GT said:

“We are delighted to announce a new partnership with Huel. In recent years, Huel has reinforced its position as a leading brand within the sustainable nutrition sector addressing time-critical carbon issues, exactly the type of company we look to invest in.”

Founded in 2015, UK-based Huel offers plant-based and ethically sourced food products, including powdered shakes and instant meals, with a mission to provide nutritionally complete, convenient and affordable food, with minimal impact on animals and the environment.

Food and beverage sector emissions account for about a third of global GHG emissions and are among the most difficult to address, with the vast majority coming from the supply chains of food and beverage companies, rather than from “direct” emissions from the companies’ operations. According to Huel, the carbon footprint of its meals are 50% below those of the average U.S. meal, and the company has committed to have its meals being in line with targets to limit global warming to 1.5°C.

Since launch, Huel has sold over 300 million meals worldwide, with revenues growing by more than 40% last year to $175 million. The investment comes as Huel prepares to open a net zero manufacturing facility in Milton Keynes, UK, next year.

James McMaster, CEO of Huel said:

“We are delighted to announce this partnership with 1GT, which will further support our growth ambitions, as we continue our global expansion and deliver on our mission. This is a huge vote of confidence in the business and 1GT’s commitment to us demonstrates the significant potential of our brand and the strength of our sustainability credentials.”