TSG Consumer Partners Closes Two New Funds With Capital Commitments Of $2.5 Billion
SAN FRANCISCO, CA, – December 8, 2015 – TSG Consumer Partners, LLC, (“TSG”) a leading investment firm focused exclusively on the branded consumer sector, announces the closing of TSG7 A and TSG7 B on November 17, 2015, with $2.5 billion of aggregate committed capital. The funds were substantially oversubscribed with Investor interest approaching $6 billion. Fundraising efforts officially commenced in September of this year. The firm’s predecessor fund, TSG6, has $1.3 billion in committed capital.
The new funds will continue TSG’s long-term investment strategy of seeking to build value by growing businesses and brands in the consumer space. TSG7 A will focus on larger, high growth consumer companies with equity investments generally ranging between $50 million and $400 million. TSG7 B will focus on smaller, high growth companies with equity commitments generally ranging from $15 million to $50 million.
Founded in 1987, TSG Consumer Partners pioneered focused sector investing as one of the first private equity funds to invest solely in consumer products companies. TSG has achieved a top-tier track record and expertise in growing consumer brands. The average net IRR to its limited partners is approximately 24% through its history, 30% for its last three funds, and 50% for its most recent fund. In addition, TSG is unique in the number of women in its senior ranks and throughout the firm – 50% overall – driven by a belief in the value of diverse perspectives across an investment team.
“We are very grateful for the strong support and confidence from our limited partners," said Chuck Esserman, CEO and Founder of TSG Consumer Partners. “Our team of dedicated investment and operating professionals has achieved attractive results through our history and particularly during the last decade – and in both strong and weak economic cycles.”
Jamie O’Hara, President of TSG Consumer Partners said, “These new funds will expand our scope in different ways – 7A will provide additional capital to make sizable majority and minority investments in larger companies, while 7B will provide resources to smaller companies that are in earlier stages of growth. Leveraging our talented, deeply experienced team across both platforms will greatly benefit all of our partner companies.”
About TSG Consumer Partners, LLC
TSG Consumer Partners, LLC is a leading investment firm with $5 billion of assets under management, focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household and apparel & accessories, and e-commerce sectors. Representative past and present partner companies include vitaminwater, thinkThin, popchips, Muscle Milk, Yard House, Stumptown, Pabst, Planet Fitness, REVOLVE Clothing, Smashbox Cosmetics, Pureology, Sexy Hair, e.l.f. cosmetics and IT Cosmetics.