North Castle collects $100m for Fund V

The consumer-focused firm, which has remained active both on the acquisition and exit front this year, is targeting $250m for its fifth fund.

Greenwich, Connecticut-based North Castle Partners has raised about $100 million for its fifth fund, according to a source with knowledge of the situation.

The fund is targeting $250 million for investments in consumer businesses in the health and wellness sector. The firm’s previous fund collected $300 million in 2007.

A spokesperson for North Castle declined to comment on the fundraising.

The firm has remained active on the investment and exit front since launching Fund V earlier this year. North Castle invested an undisclosed amount from Fund V in fitness club franchisor Curves International in September and sold lacrosse helmet company Cascade Helmets for $64 million in June. Other 2012 transactions include an investment in cosmetics and skincare company Palladio Beauty Group in April.

It's a broad category, but we are finding a significant amount of private equity and strategic interest in the various assets that are either available today or probably will be available in the next 18 months.

Kurt Roth

North Castle makes control investments in North American consumer businesses with revenues between $10 million and $200 million. The firm targets companies that benefit from trends in “health, wellness and active living”, a $1 trillion market, according to the firm's website.

In May, mid-market investment bank Baird published a report highlighting the growth in the “healthy living” sector, comprised of a variety of businesses including fitness centers, sports apparel and equipment, natural and organic food and nutritional vitamins and supplements.

“It’s a broad category, but we are finding a significant amount of private equity and strategic interest in the various assets that are either available today or probably will be available in the next 18 months,” Baird director Kurt Roth told Private Equity International in a previous interview.

Previous health-related North Castle portfolio companies include nutrition company EAS, sold to pharmaceutical giant Abbot Laboratories for $320 million in 2010, and health food company Atkins Nutritional Holdings, sold to Roark Capital Group the same year.

North Castle was founded in 1997 by Charles “Chip” Baird, a former managing director at AEA Investors and Bain & Co. consultant.