MSW Capital is raising R$200 (€86.6 million, $123.5 million) for its first fund, which will focus on Brazil’s growing food services industry, according to a source close to the firm.
The fund will be invested through a holding company that will make control and minority investments between R$15 million and R$50 million, the source said. MSW will make five to eight investments from the fund, focusing on growth companies with R$15 million to R$100 million in revenue.
MSW Capital Food Services I has an industry-standard two percent management fee and 20 percent carry, the source said.
Beige Group is acting as a placement agent for the fund.
The fund will capitalize on what the firm views as a growth opportunity in Brazil’s food services industry, the source said. The country’s growing middle class has led to an increase in revenues for dining and restaurant services companies, a sector that is highly fragmented and dominated by family-owned businesses or local chains.
MSW was founded in 1997. The Rio De Janiero-based firm has around $60 million in assets under management, the source said. In addition to food services, MSW also targets companies in the fashion retail and technology sectors, according to its website.
Earlier this year, Brazilian private equity firm Vinci Partners struck an agreement with Burger King to develop the fast food chain’s presence in the country. Vinci said it would use its $1.4 billion debut Brazilian fund to help expand Burger King's presence from 108 stores to 1,000 locations.