By Gerelyn Terzo, Global AgInvesting Media
Private equity firm Arbor Investments, which specializes in the food and beverage sector, has announced a major milestone. The firm has achieved final close of its sixth equity fund, Arbor Investments VI, and its parallel vehicle, Arbor Investments VI-A, or Fund VI. The fundraise attracted over $1.2 billion in capital commitments, signaling strong investor confidence in the strategy. Palm Beach, Florida-based Arbor, whose motto is, “We believe in the power of food,” oversees $3.1 billion in assets under management as of a Q1 2024 filing.
According to a combination of reports and filings, Arbor Investments launched Fund VI in 2024 after attracting $1.5 billion to its coffers for Fund V in 2020. Along the way, portfolio holdings have included Artisanal Brewing Ventures, Carnivore Meat Company and Oregon Freeze Dry.
Arbor Founder and Chairman Gregory Purcell stated, “We are humbled by the commitments from our longtime limited partners and welcome new investors who have entrusted Arbor with their capital. The closing of Arbor Fund VI during this unique fundraising environment is an endorsement of the incredible team we’ve built and the highly differentiated strategy we’ve refined over the last 26 years that we’ve been investing in the food industry.”
In addition to the fund closing, Arbor Fund VI is spearheading the recapitalization of Rubix Foods (formerly Darifair Foods), a culinary and food science specialist providing flavor and functional ingredients to restaurants and food manufacturers. Rubix Foods has been under the ownership of Arbor Fund IV and the Block family for the better part of the past decade. This deal will see both Arbor Fund IV and the Block family divest their entire ownership stakes to Arbor Fund VI.
In 2019, Arbor teamed up with the fourth generation of the Block family, led by CEO Andy Block, with a shared ambition to establish Rubix as a hub for groundbreaking flavor technology. Since then, Arbor and Rubix have facilitated substantial investments in talent, facilities, brand development, R&D, infrastructure and the creation of novel product capabilities. Rubix began to expand rapidly, including adjusted EBITDA close to doubling through the acquisition of new clients, food-tech innovations and the introduction of new offerings.
Arbor expects that this recapitalization will empower Rubix to maintain its growth momentum while serving as the central “innovation engine” behind some of the most sought-after food and beverage flavors. The transaction will also serve as a liquidity event for the Block family and investors in Arbor Fund IV.
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