VMG to close second fund on $375m hard-cap

The California-based lower mid-market firm is expecting to hold a final close by 15 June.

Consumer products-focused VMG Partners is expecting to close its second fund on its $375 million hard-cap, a source with knowledge of the situation told Private Equity International.

The firm is anticipating holding a final close by 15 June, the source said. VMG specialises in acquiring highly branded consumer products companies in the lower mid-market, with an emphasis on the lifestyle, wellness, personal care and food and beverage sectors. The firm closed its debut fund on $325 million in July 2007.

Park Hill Group acted as placement agent for VMG.

VMG portfolio companies include snackmaker Robert’s American Gourmet Foods, whose specialty brands include Pirates 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.

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.