TSG Consumer Partners announced today it raised $1.3 billion for its sixth fund, TSG6 LP. That was about 30% more than the firm’s $1 billion target, says James O’Hara, a TSG MD. The PE firm, which has offices in San Francisco and New York, had about $1 billion in additional interest, O’Hara says.
“We were humbled by the level of interest we had,” he says.
The speed of TSG’s fundraising was impressive. Some firms need as long as two years to close their funds, while TSG rounded up comittments for fund VI in about 60 days, O’Hara says. The PE firm issued its PPM for TSG6 after Labor Day and was nearly fully closed by Nov. 11, he says. They did not use a placement agent. TSG’s last fund, which raised $900 million in 2007, also took about 60 days, he says.
O’Hara wouldn’t say the fundraising for fund VI was easy. However, the firm’s “level and consistency of returns and unique strategic and operating team,” helped TSG speed to a quick close, O’Hara says. He declined to disclose IRR’s for TSG’s funds. TSG5 produced an IRR since inception of 10.21% while TSG4 has a 39.42% IRR, according to Dec. 31 data from Colorado PERA.
TSG invests in branded consumer companies and is a strong investor in the beauty space. The firm typically invests $25 million to $100 million per deal. TSG owns Sexy Hair Concepts and Alterna, which each make and market hair care products. In 2010, TSG sold SmashBox Beauty Cosmetics to Estee Lauder.