VMG closes Fund II on $375m hard-cap

Consumer products-focused VMG Partners has held a first and final close for its second fund on its $375 million hard-cap, a source with knowledge of the situation told Private Equity International.

The fund, which was significantly oversubscribed, according to the source, will target highly branded consumer products companies in the lower mid-market, with an emphasis on the lifestyle, wellness, personal care and food and beverage sectors. VMG closed its debut fund on $325 million in July 2007.

Park Hill Group acted as placement agent for the fund.

VMG portfolio companies include snackmaker Robert’s American Gourmet Foods, whose specialty brands include Pirate’s Booty; Colorscience, a luxury mineral makeup brand; and Timbuk2, a manufacturer of carry-all bags and accessories.

Last year, VMG sold Waggin’ Train, a marketer of all-natural pet treats, for a reported $450 million. The exit generated a 5.2x return multiple, according to a source with knowledge of the deal.

California-based VMG’s first investment was the acquisition, in partnership with US firm Capital Logic Partners, of Timbuk2 in October 2005. The firm was launched earlier that year when five of VMG’s current partners spun out of private equity firm The Shansby Group.