Yellow Wood Partners, a Boston, MA-based private equity firm focused on investing in consumer brands and companies, closed its latest fund, at $370m.
Yellow Wood Capital Partners II LP, includes a small group of eight sophisticated institutions, including a number of large university endowments, foundations and institutional investors, a number of which are returning Limited Partners of the firm. Park Hill assisted the firm as Placement Agent for certain of the limited partnership interests. Proskauer Rose LLP served as legal counsel.
Led by Dana Schmaltz, Founding Partner, Yellow Wood Partners, Tad Yanagi, Partner, Fund II will pursue the same investment strategy it has employed since inception, partnering with management teams in North America and applying its operational and financial resources to grow brands and companies into category leaders.
The firm seeks to invest the new fund in a limited number of platforms, probably no more than five, in the consumer sector.
Industry categories targeted for investment span the consumer sector and may include:
– Beauty & Personal Care,
– Health & Wellness,
– Household, Food & Beverage, and
– Pet Care among others.
Targeted equity investment for each portfolio company will be between $50-$150+ m.
Yellow Wood recently completed the $1.425 billion sale of PDC Brands, a provider of beauty, personal care, and wellness brands, after quadrupling the company’s revenue and growing EBITDA by over five times. During Yellow Wood’s ownership, PDC completed five exclusive acquisitions adding nine additional growing brands to the platform.