Manna Tree Co-Founders on the Trends Driving Health & Wellness Investing

Ellie Rubenstein and Ross Iverson believe there’s a bright future for consumer health and wellness brands, especially those that focus on everyday products such as food, drinks and nutrition
The wellness market is booming, currently valued at over $6 trillion and projected to reach $9 trillion by 2028, according to figures from the Global Wellness Institute.
For Gabrielle (Ellie) Rubenstein and Ross Iverson, co-founders and managing partners of private equity firm Manna Tree, health and wellness isn’t just a trend, it’s an increasingly serious global investment opportunity. Rubenstein and Iverson would go so far as to say investors should view health and wellness as its own “asset class,” citing rising consumer demand, especially among young people.
“Led by Gen Z, every category of demographic has increased their spending on health and wellness,” Rubenstein told Athletech News, referencing a recent white paper her firm published. “So I think what you’re finding is maybe a distrust of traditional healthcare, (while) people are getting more educated, more informed and buying brands that make them feel better.”

Founded in 2018, Manna Tree has nearly $700 million in assets under management. With office hubs in Denver, Minneapolis and New York, the PE firm invests in consumer health and wellness brands, primarily in the clean food and beverage space. Its notable investments include Good Culture cottage cheese, Health-Ade Kombucha and Vital Farms, an ethically produced egg brand that went public in 2020 with a market cap of $1.3 billion.
“We think of health pretty simply,” Iverson said of Manna Tree’s general philosophy. “Put good nutrition in your body, stay active and avoid toxic products. If you can do those three things, you can probably get 99% of the way there.”
According to Iverson, people are starting to get on board with this way of thinking, shifting their spending habits away from things like processed foods and toward products with cleaner ingredient labels.
“Over the last five years, we’ve now seen this democratization of knowledge through the podcast universe and through social media. … I think as the knowledge becomes more uniform, the consumer starts to spend more of their money on the things that they know really make them well,” he said.

The Manna Tree co-founders believe the majority of consumers will continue to spend on health and wellness products despite macroeconomic concerns like inflation.
“If you look at where people spend money in an inflationary environment, it’s your family, your food, (and) your health and wellness,” Rubenstein said. “It’s what you can control.”
While Manna Tree’s investments aren’t limited to the food and beverage space, the firm will continue to focus on categories that drive “repeatable purchases” among wellness-focused consumers. Rubenstein cited nutrition and supplement powders as a key category to watch, whether those be protein powders, recovery or even breast-milk substitutes. There will also be high demand for food products that emphasize transparency and clean ingredients, she believes.
“In the same way we did regenerative agriculture in eggs, beef and dairy, you’re now watching people want clean, traceable coffee that’s mold-free (and) clean, traceable protein powders,” she said. “So it’s the same transparency and traceability that we’re looking into, in more shelf-stable products.”
Rubenstein also drew an important distinction between the way Manna Tree approaches health and wellness, and the way some other firms approach investing in the space.
“We are not in the live forever category,” she said. “We are in the every day: How do we help people live better, longer?”
That’s not to say Manna Tree won’t look to embrace parts of the longevity movement, but you probably shouldn’t expect to see the firm back the next hot anti-aging drug.
“I want to find deals on the longevity side as well,” Iverson said. “If you look at tennis shoes and orthotics, those types of things can make a huge difference in quality of life past 70 years old. That’s all part of the health and wellness journey. This isn’t just about getting that 30-year-old who’s maximizing every piece of their life. It’s making those small, incremental (changes).”