New PE Firm Alert: Manhattan Growth Partners

Manhattan Growth Partners has launched as a new growth equity firm led by Dean Bosacki (former managing director with Friend Skoler) and Patrick McBride (former partner with The Walnut Group).

Bosaki says that MGP is utilizing a fundless sponsor model with several family office investors, although he “hates” the term fundless sponsor: “I just think the traditional private equity fund model is kind of broken, and LPs love the transparency and shorter investment cycle that comes with what we’re doing,” he explains.  

A typical MGP deal will involve between $10 million and $15 million of equity, in exchange for control positions in growth-stage companies. No official industry focus, although the partners’ backgrounds would suggest consumer products, lifestyle brands and services.

Its first investment is in a personal body care products maker called Hugo Naturals. No financial terms were disclosed, although Bosaki tells me that it came in a bit under that $10 million floor. He adds that he and McBride have spent most of their time since the investment at the company’s Chatworth, Calif. headquarters, and that their goal is to be actively involved in the management of a limited number of portfolio companies:

“I think we both really wanted to be out on our own working on companies we love without spreading ourselves too thin,” he explains. “It’s only been a couple months, but they’ve been among the most rewarding says of my career so far.”