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VMG closes Fund III on $500m

The third fund has made three investments in consumer branded food product companies.

San Francisco-based VMG Partners has closed its VMG Partners III LP with $500 million in capital commitments, according to a statement.

A spokesman confirmed with Private Equity International that the firm, which invests in and builds branded consumer product companies in the lower middle market, has so far made at least three investments out of the fund: Health Warrior, a superfood snacks company, Perfect Bar Holdings, a nut butter-based nutrition bar developer, and Vermont Smoke and Cure, a manufacturer and marketer of humanely-raised meat products.

The fund invests in companies regardless of size or stage and as small as $5 million or as large as $500 million, VMG managing director Kara Cissell-Roell said in a statement.

Earlier this year the firm announced the sale of plant-based nutrition company Vega to White Wave for $550 million. 

Once the sale is completed, VMG will have exited all of its investments from the 2007 vintage debut fund in less than nine years, according to the statement. PEI's Research & Analytics division indicates that this 2007 fund closed on $325 million in June of that year.

Investors in VGM's existing funds include college endowments, charitable foundations, international investors and corporate pension plans.

Park Hill Group was the placement agent and Latham & Watkins legal advisor on its third fund.

The firm currently manages $1.2 billion in assets, according to PEI's Research & Analytics division.