THE BAINUM FAMILY FOUNDATION - BETHESDA, MD

DUE DILIGENCE OF FOODSHED CAPITAL AND EVALUATION OF INNOVATIVE, EQUITABLE FOOD SYSTEM FINANCING

INVESTMENT STRATEGY, IMPACT ANALYSIS | 2023

The Bainum Family Foundation (Bainum) engaged Food Works Group to conduct a due diligence of Foodshed Capital (FoodCap), an equity-driven CDFI, to inform Bainum’s potential investment to support FoodCap’s work supporting Black farmers in the Mid-Atlantic region. We assessed FoodCap’s progressive lending model of low- and zero-interest loans, relationship-based lending, and lending pipeline practices that lower barriers to entry for people who have been restricted from traditional sources of capital, with a focus on BIPOC and low-income farmers. Our work culminated in a report that included assessments and key insights about the CDFI’s strategies, capacity, practices, trajectory, and impact. To contextualize FoodCap’s work, we produced an overview of the field of progressive lending in the report. In addition, we focused particularly on market access and efficacy of technical assistance for loan recipients.

IMPACT INVESTING FOR FOOD SYSTEM TRANSFORMATION: A CASE STUDY OF THE BAINUM FAMILY FOUNDATION’S INVESTMENT IN 4P FOODS

INVESTMENT STRATEGY, IMPACT ANALYSIS | 2023

In collaboration with LOCUS Impact Investing, FWG prepared a case study of the Bainum Family Foundation’s (Bainum) investment in 4P Foods, a for-profit food hub in the Mid-Atlantic region. FWG and LOCUS investigated how this unique programs related investment (PRI) could open the door for more private capital investment in mission-based businesses for transformative change in the food system. FWG conducted and analyzed interviews with 4P Foods, peer food hubs, and regional food system stakeholders to understand the impact of the Bainum investment on 4P Foods and the ripple effects on the regional food system. The case study serves as a resource for impact investors and businesses dedicated to local food and building an equitable food system.