Arbor Investments wrapping 2 funds for total $875 mln

  • Arbor Investments IV books $750 mln, 25 pct above target
  • Chicago firm wraps up $125 mln Debt Opportunities Fund I
  • Arbor won a Buyouts Deal of the Year Award

Arbor Investments, the Chicago specialist in middle-market food-and-beverage deals, expects to close its fourth flagship buyout fund as well as a companion debt fund for a total of $875 million in commitments, according to two sources.

The firm managed to finish its fundraising effort within a few months, based on strong performance of past funds, one of the sources said.

Arbor Investments IV will raise about $750 million, 25 percent ahead of its $600 million target. The firm nearly doubled the $400 million of Fund III’s close in 2011.

Subordinated-debt fund

Meanwhile, Arbor plans to close Arbor Debt Opportunities Fund I with $125 million for mezzanine and other debt investments. It’s a captive subordinated-debt fund to support Fund IV deals, the sources said.

Shannon Advisors acted as placement firm for Fund IV, according to the second source. The firm also handled the fundraise for Fund III.

Arbor Investments did not return an email or a phone call.

Arbor Investments won a Buyouts Deal of the Year Award in March for generating a 9.4x return on Gold Standard Baking, which it sold to Parallel49 Equity  (formerly Tricor Pacific Capital) in April 2015. Arbor had held Gold Standard for about seven years before exiting.

Active in its portfolio, Arbor’s website said, are companies including, among others, Artisanal Brewing, the Charlotte, North Carolina, platform for craft brewers; PBF Pita Bread Factory, the Burnaby, British Columbia, baked-goods provider, and Trojan Lithograph, the Renton, Washington, maker of packaging and point-of-purchase displays for consumer products and food and beverage.

Action Item: Arbor’s Buyouts deal of the year:

Photo courtesy of iStock/imagedepotpro