Private equity firm TSG Consumer Partners has closed on its sixth fund at $1.3 billion.
The San Francisco-based firm specializes in investments in high-growth, middle-market branded consumer firms. So far in the personal care space, it has made investments in beauty and skin care firms Smashbox Cosmetics, Elf Cosmetics and Perricone MD Cosmeceuticals, as well as nail care brand Cutex. It also has made investments in premium hair care brands Alterna, Kenra and Pureology. TSG acquired Sexy Hair Concepts in May. The firm sold its minority stake in Smashbox to The Estée Lauder Cos. Inc. in 2010, and its stake in Pureology to L’Oréal in 2007.
With the new fund, Jamie O’Hara, managing director, said TSG will also eye investment opportunities in fashion and apparel. “We’ve looked at many fashion and apparel firms over the last several years, and we are actively looking at opportunities in those segments,” he said.
According to O’Hara, the firm was able to complete fund-raising in 60 days from the time it issued its private placement memorandum.
“The vast majority of investors are [repeat] investors who re-upped at often higher levels in the new fund. We also added a select group of international and U.S.-based institutional investors,” O’Hara said, noting that an attractive investment criteria is that the TSG funds create returns through growth versus leverage.
The TSG team members are primarily marketing strategists who help brands and partner companies focus on strategic growth options, whether new products or channels of distribution, and ensure that the firms have the capital structure to follow-through on those initiatives, O’Hara explained.