Arbor Investments has raised a total of $890 million for two funds. The Chicago-based private equity firm, which focuses on the food, beverage and related industries, raised $765 million for its fourth equity fund and $125 million for its initial debt fund. Shannon Advisors was the placement agent for the funds.
CHICAGO, IL, July 12, 2016 – Arbor Investments (“Arbor”), a specialized private equity firm that focuses exclusively on acquiring premier companies in the food, beverage and related industries, announced today the closing of its fourth equity fund, Arbor Investments IV, LP (“Fund IV”), as well as its inaugural captive subordinated debt fund, Arbor Debt Opportunities Fund I, LP (“DOF I”). The funds, which were significantly oversubscribed, both closed on July 7, 2016.
Since 1999, Arbor has built successful, diversified portfolio companies in the frozen foods, baked goods, dairy, protein, foodservice equipment, bottling, ethnic, kitchenwares, ingredients, consumer and food-grade packaging and distribution segments. In 2011 and then again in 2016, Buyouts magazine awarded Arbor its Overall Deal of the Year accolades in connection with the sales of Arbor’s Great Kitchens, Inc. and Gold Standard Baking, Inc. investments.
Fund IV will continue the same successful investment strategy employed by Arbor for its predecessor funds. This strategy consists of making conviction private equity investments in reasonably valued, high quality middle market food and beverage companies that exhibit the potential for substantial capital appreciation through improved financial performance and enhanced strategic positioning.
DOF I was raised to provide a source of subordinated debt to Fund IV portfolio companies. Arbor believes that DOF I will substantially enhance Fund IV’s ability to structure and execute platform investments while preserving equity upside and providing a new investment vehicle for investors to obtain an attractive risk-adjusted investment return.
“Our investment philosophy and operating orientation continues to produce strong deal flow and investment returns,” commented Arbor’s President, Joseph P. Campolo. “Fund IV and DOF I will allow us to continue to target companies that are at an inflection point in their development or are undergoing a significant ownership or management transition and that will benefit from Arbor’s strategic vision and considerable expertise in the food & beverage industry.”
“We are extremely gratified by the level of support we received from our existing investors and the overwhelming level of interest from new investors, which allowed us to complete our fundraising within 90 days,” said Gregory J. Purcell, Arbor’s Chief Executive Officer. “We believe that the attractive dynamics in the food & beverage sector contribute to an excellent investment environment and we look forward to investing Fund IV and DOF I and continuing to deliver exceptional returns for our limited partners.”
Shannon Advisors acted as placement agent for the funds and DLA Piper LLP (US) served as fund legal counsel.
About Arbor Investments: Founded in 1999 and headquartered in Chicago, Illinois, Arbor Investments is a specialized private equity firm that focuses exclusively on acquiring premier companies in the food, beverage and related industries. The firm has acquired or invested in over 44 food, beverage and related companies in North America.