July 24, 2018

Consumer-retail focused growth equity firm Alliance Consumer Growth (ACG) announced the close of its fourth fund (ACG IV) oversubscribed at its hard cap of $350 million. Fund IV’s investors are largely returning limited partners in ACG, subscribing to the same investment strategy of ACG’s prior three funds which identify early opportunities to back rapidly-growing, “rising star” brands.

Launched in 2011 by Josh Goldin, Trevor Nelson, and Julian Steinberg with ACG’s debut fund, Alliance Consumer Growth Fund, LP, ACG focuses on securing minority stakes and providing industry-specific experience to entrepreneurial consumer product and retail food, beverage, pet, baby, restaurant, and personal care brands. With a bi-coastal presence in both New York and Los Angeles, ACG makes investments ranges between $5 million and $25 million in targeted companies with sales of between $10 and $90 million, Goldin told Project Nosh.

Since its beginning, ACG has partnered with some of the most successful startups in the food and beverage space, and has executed eight successful exits. Some of the brands the firm has partnered with include Shake Shack, which went on to complete an IPO in January 2015 that exceeded expectations; KRAVE Jerky, which was later acquired by Hershey in 2015; Babyganics, which was later acquired by S.C. Johnson in 2016; EVOL Foods, which was sold to Boulder Brands in 2013; barkTHINS, which was later also acquired by Hershey, and Suja Juice, which later partnered with Coca-Cola. Others in its impressive portfolio include The Honest Kitchen, Blaze Pizza, Tender Greens, and Snooze AM Eatery, among others.

“More than anything, our strategy is dictated by our love of consumer brands and really disruptive brands that are doing something exciting, bringing incredible innovation and newness to a category.” Goldin told Project Nosh. “[We’re] trying to find companies that we’re really excited about, consumers are really excited about and retailers are excited about.”

Fund IV builds upon a steady momentum for ACG, which closed its third fund at $210 million in February 2016, and its second fund at $90 million in 2014.

“I view Fund IV as the natural evolution of our business,” said Goldin. “We’re not deviating whatsoever from the core strategy that we’ve always had, which is to identify rising star, early-stage brands in food and beverage and other categories and be able to provide capital, and support and expertise to them to help them grow.”

-Lynda Kiernan