Encore Consumer Capital closes third fund at $260m

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.