Castanea Partners closes Fund IV on $600 mln

Castanea Partners has closed its fourth fund on $600 million. Castanea Partners Fund IV, L.P. will make investments of $15 million to $75 million in buyouts, growth equity, acquisition capital raises and operationally challenged companies. Along with the fund close, Castanea has promoted Steve Berg to managing partner.

Press Release

Castanea Partners, a Boston-based private equity firm focused on investing in branded consumer products and services, announced today the closing of the firm’s fourth fund, Castanea Partners Fund IV, L.P. The $600 million fund received commitments from a small group of prominent institutional investors, including endowments, foundations, family offices, and pension funds. As has been the case since the inception of the firm, Castanea’s principals contributed significant capital to the new fund. The firm now has over $1 billion in assets under management.

“We have been privileged over the years to have the support of a wonderful group of limited partners, and we are thrilled as well with the quality and commitment of our investor group in Fund IV. We will continue to focus on investing in great consumer companies and are committed to working hard to justify our investors’ trust in Castanea,” said Robert Smith, Managing Partner and co-Founder of Castanea.

Castanea is also announcing the promotion of Steve Berg to Managing Partner. As a partner, Steve joined Castanea in 2002, and was included in the launch of the firm. Steve has over sixteen years of experience in consumer products and retail brands. Prior to Castanea, Steve was with Bain Capital and Bain & Company.

“Steve has been a valued partner and significant contributor to the development and success of Castanea Partners. He has led a number of the firms’ successful investments and worked closely with management teams to drive value for our limited partners. We are proud to recognize his leadership in the firm and the industry,” said Brian Knez, Managing Partner and Co-Founder of Castanea.

Castanea Partners Fund IV seeks to make equity investments of $15 million to $75 million in traditional managed buyouts, sales of private companies, growth equity and acquisition capital raises, and operationally challenged companies.

Consistent with the team’s operating experience and the firm’s overall investment strategy, the new fund will continue to focus its efforts on partnering with small to mid market differentiated consumer brands that have multi-channel direct-to-consumer opportunities for growth.

The fundraising comes on the heels of recent investments made in the prior fund: Aurora Brands, the owner of two iconic American luxury home and lifestyle brands, MacKenzie-Childs and Jay Strongwater; Essentia, a provider of enhanced, high alkaline water; and 4moms, a company that develops and markets branded juvenile products that incorporate robotics in their designs.

Ropes & Gray LLP served as fund counsel, and Harpeth Capital, LLC as fund consultant.