Encore Consumer Capital closes third fund at $260m

The fund exceeded its target to hit its hard cap close after two months in the market.

Encore Consumer Capital has closed its third fund at its hard cap of $260 million after just two months in the market, according to a statement.

The San Francisco private equity fund manager did not disclose the investors in the Encore Consumer Capital Fund III, which exceeded its fund target size by $35 million.

Limited partners included existing investors, as well as new pension plans, endowments and family offices, the firm's announcement noted. Investors in its second fund, that closed at $211 million in 2012, included Dixon Advisory, Industriens Pension, The Hartford and the US Select Private Opportunities Fund, according to  PEI Research & Analytics.

Officials from Encore did not return calls by press time.

Encore's co-founder and managing director Scott Sellers said in a statement that the new fund will maintain the firm's existing strategy of investing in lower mid-market consumer products businesses, generating $10 million to $100 million in annual sales. The California fund manager typically invests $5 million to $30 million in its both majority stake and minority interest investments, according to its website.

Kevin Murphy, a managing director at Encore, credited the recently-formed placement agency Acalyx Advisors for the fund manager's short fundraising period. Former Mvision staffers Jennifer Rinehart, Joe McDonald and Lina Russo launched New York-based Acalyx Advisors earlier this year. 

Encore completed the acquisitions of private label food manufacturer VanLaw Food Products in January. Its portfolio includes a mix of other consumer-oriented businesses including craft brewer Full Sail Brewing, produce distributor FreshKO, cosmetic maker butter, quinoa-based food products seller Ancient Harvest, and mussels' producer Atlantic Aqua Farms, among others.

Latham & Watkins LLP provided counsel to Encore.