SAN FRANCISCO, CA, and NEW YORK, NY; August 4, 2008 – TSG Consumer Partners LLC (“TSG”), the nation’s leading private equity investor specializing in acquiring and building branded consumer companies, today announced a dedicated fund focused exclusively on investments in emerging consumer growth brands. The fund, TSG Consumer Growth Fund, will invest $15 – $30 million of equity in high-growth consumer brands with sales of approximately $30 million and above in categories such as food and beverage, health and beauty, household products, pet and other consumer packaged goods. Leading investment efforts at the new Fund will be Yasser Toor, a TSG Managing Director.
“The goal of our TSG Consumer Growth Fund is to support consumer brands of high potential with value-added capital, operational resources and management advisory services typically available only to much larger companies,” said Mr. Toor, who is based in the firm’s New York office. “TSG has a 20-year history of investing in emerging brands that have enjoyed aggressive growth during our investment tenure and we plan to build on those successes with new partner companies through our latest Fund.”
TSG’s most recent fund, TSG5 L.P., which closed in 2007, will continue to seek larger equity investments of up to $100 million in later-stage consumer brands in similar sectors. TSG manages over $1.5 billion in total commitments.
Chuck Esserman, CEO of TSG Consumer Partners, said “Our two vehicles, TSG5 and the new TSG Consumer Growth Fund, will enable us to provide consumer brands of all sizes the strategic support and capital they require to scale aggressively and successfully. We look forward to continuing to work with entrepreneurs and management teams throughout different stages of their development cycles.”
About TSG Consumer Partners
TSG Consumer Partners is the leading private equity firm in the U.S. focused exclusively on the consumer category. TSG pioneered the use of private equity in high-growth, middle- market branded consumer companies. TSG was also the first institutional investment fund to focus on investing in natural and organic foods companies as well as companies focused on ethnic foods, functional food and beverage categories, and orphan brands in the personal care and household sectors. Along with its in-depth understanding of and experience within the consumer products industry, TSG engages in a highly effective hands-on management approach that distinguishes the firm in attracting investments and building companies. Since its inception in 1987, TSG’s branded consumer investment strategy has achieved cumulative cash-on-cash returns of approximately 60 percent annually.
TSG’s investments over the years include Famous Amos Chocolate Chip Cookies, Terra Chips, MET-Rx Nutrition, Mauna Loa macadamia nuts, Glaceau vitaminwater, Smart Balance Foods, PureOlogy hair care, and Smashbox Cosmetics, amongst others.