By Gerelyn Terzo, Global AgInvesting Media
Chicago, Illinois-based private equity firm Shore Capital Partners is experiencing success scaling companies that operate in the food and beverage sectors. The firm, which also has offices in Nashville, Tennessee, has closed its latest food and beverage fund — Shore Capital Food & Beverage Partners Fund III — with over $450 million in LP commitments. The fund close brings the firm’s total assets under management (AUM) to approximately $13 billion, marking a major milestone for Shore’s sector-focused expanding platform.
With roots in the healthcare sector, Shore Capital expanded its reach into the food and beverage space in 2019, where the PE firm recognized opportunity that fit into its midcap strategy. Fund III is the latest iteration in a series of food and beverage-specialized funds that the firm has raised and closed over the past six years, the first two of which were oversubscribed.
Shore Capital’s Fund III will stick to the PE firm’s knitting by backing lower middle market businesses with $5 million-$100 million in revenue across food and beverage manufacturing, distribution and packaging services. The goal is to help founders scale with hands-on operational support, M&A expertise and access to Shore Capital’s wider network of resources.
Shore Capital Founder and Managing Partner Justin Ishbia stated, “The close of our third food and beverage fund reflects both the strength of our platform and the continued opportunity we see in this sector. Food and beverage remains one of the most active and resilient areas of the lower middle market, with meaningful growth potential through operational excellence and strategic discipline.”
Momentum across the platform has been building. Several Shore-backed companies, including Whetstone Distribution and FirmaPak, were included among the rankings on Crain’s Chicago Fast 50 list. Earlier this year, Shore also completed a recapitalization of portfolio company Sweetmore Bakeries through a special purpose vehicle to support the company’s next phase of growth.
“We’ve built a strong foundation in food and beverage by focusing on segments where our operational playbook can unlock substantial value,” said Richard Boos, Partner at Shore and leader of the firm’s food and beverage strategy. “With Fund III, we’re continuing to expand into sub-verticals like produce distribution, vending and others where we see market fragmentation and demand for scaled resources.”
Fund III was substantially oversubscribed, attracting strong support from a diverse base of limited partners, including university endowments, financial institutions, family offices and funds of funds. Shore’s own partners also made a significant capital commitment, showcasing a long-term alignment and confidence in the strategy and sector.
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