Alliance Consumer Growth has closed its debut private equity fund, Alliance Consumer Growth Fund L.P., with $40 million in committed capital, the firm announced Monday. The firm has made two investments so far, in cleaning and personal care products maker KAS Direct; and in The Honest Kitchen, maker of dehydrated human-grade pet food. Alliance Consumer Growth aims to make investments of in consumer companies with revenues typically ranging from $5 million to $30 million. The firm’s investment size is $2 million to $10 million of equity per company.
Alliance Consumer Growth (“ACG”), announced the closing of its debut private equity fund, Alliance Consumer Growth Fund, L.P., (the “Fund”) with $40 million in committed capital. The Fund will make investments in high-potential young consumer product and service companies. Founding partners Josh Goldin, Julian Steinberg and Trevor Nelson have overseen successful growth investments in the consumer sector for the past several years.
ACG also today announced investments in two category-creating companies: KAS Direct LLC, maker of the BabyGanics and PawGanics brands of safe and effective cleaning and personal care products; and The Honest Kitchen, the pioneering brand of dehydrated human-grade pet food.
ACG seeks to make equity investments in best-in-class young consumer companies with revenues typically ranging from $5 million to $30 million. The firm’s investment size is $2 million to $10 million of equity per company, although ACG’s strategic relationships with several of its limited partners will allow it to lead or participate in transactions with larger capital requirements. ACG will invest in private companies in the food, beverage, personal care, household products, apparel, retail and restaurant industries that meet its investment criteria and which are seeking an active, value-added partner to accelerate growth.
“We are thrilled to launch ACG so we can provide growth capital to innovative consumer companies that are the industry leaders of tomorrow” said Goldin. “Traditionally, many emerging brands have faced difficulty accessing funding as capital providers have gravitated to larger and larger transactions. We look forward to filling the void and enabling innovation, job and value creation through our investments.”
Goldin, Steinberg and Nelson will run the firm as founding partners. Since 2006, Goldin and Nelson have partnered to run a consumer-focused investment firm for a prominent New York family. Since 2007, Steinberg has served as a managing director for Atlas Advisors, a leading consumer industry M&A advisory firm. The founding partners’ prior investments include, among others, Plum Organics, Revolution Foods, DenTek and CleanBrands. Russell Pinilis and Lucy Zhao of Kramer Levin Naftalis LLP and Frankel advised ACG on the Fund’s formation.