TSG seals $585m casual dining exit

The consumer-focused firm has agreed to sell restaurant chain Yard House, which proved to be an ‘extraordinary investment’, according to TSG managing director Hadley Mullin.

TSG Consumer Partners has agreed to sell casual dining restaurant chain Yard House to NYSE-listed Darden Restaurants for $585 million.

TSG purchased a 70 percent stake in the company in 2007, investing from its fifth fund that closed on $875 million that year.

“Our 2007 investment in Yard House was an extraordinary investment for the fund, having exhibited remarkable performance in the 2008 and 2009 periods and thereafter,” TSG managing director Hadley Mullin said in a statement. 

The firm was unavailable to comment on the deal.

Limited partners in Fund V include the Michigan Department of Treasury, the New York State Teachers’ Retirement System and the Colorado Public Employees' Retirement Association.

TSG closed its sixth fund on $1.3 billion last December after only 60 days in the market. The firm brought back the bulk of its existing limited partners and also attracted in a few new investors to the fund.

TSG focuses exclusively on the branded consumer sector and frequently invests in beauty and personal care products. The firm, which has invested in companies including VitaminWater, Smart Balance and Muscle Milk, manages more than $2.9 billion of capital.