July 5, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Strategic Chicago-based private equity firm Shore Capital Partners announced a close for its Food & Beverage Fund II (F&B Fund II) oversubscribed at more than $290 million. 

This closing of $291.75 million lifts total capital committed to $3 billion for Shore Capital, which also has offices in Nashville and focuses on microcap investing within the Food & Beverage, Healthcare, Business Services, and Real Estate spaces.

Led by Justin Ishbia, the founder and managing partner of Shore Capital Partners, along with partner Richard Boos, and principals Tom Smithburg, Jeff Smart, and Jeff Smith, F&B Fund II will continue to engage in the successful investment strategy implemented by Ishbia and Boos, committing capital primarily in food & beverage manufacturing, distribution, packaging, and related B2B service companies with revenue landing between $5 million – $100 million.

F&B Fund II’s portfolio currently includes Moesle Meat, a specialty distributor providing beef, poultry, pork, and seafood to independent grocers, food service, and retailers throughout the U.S. Midwest; Old World, a producer of custom blended spices, seasonings, and ingredients, and BevSource, an outsourced beverage solutions provider based in St. Paul, Minnesota, among others.

“We are grateful and proud to have the continued support of our limited partners and are pleased to have successfully closed our second food and beverage fund,” said Ishbia.

“This distinguished group of investors has instilled a significant amount of trust and confidence in our talented team of investment and operating professionals,” continued Ishbia, “and we look forward to partnering with more entrepreneurs in the food and beverage industry to help them unlock substantial growth.”

This potential continues to be a reality this year, following record-breaking M&A activity in the food and beverage space in 2021, according to LEK. Currently valued at approximately $1.9 billion, the food and beverage industry has demonstrated its ability to maintain growth, resist recession in the longer-term, and present investors with disrupting trends that provide opportunity for investment, such as the rise in plant-based and functional foods; demographic shifts that drive traction for authentic ethnic flavors and foods; rising popularity of frozen and fresh prepared foods for consumers that are choosing to eat at home more often; and the ability to work social justice and ESG into their branding and missions. 

Currently, 25 percent more consumers are interested in sustainability in their food, and 33 percent more people are making food and beverage choices based on functional wellness compared to just last year. 

Furthermore, driven by a strong connection to climate and natural capital, 53 investors representing $12.4 trillion in AUM made commitments designed to support achieving the nutrition targets of the World Health Organization, guided by SDG 2 – a call to end world hunger, and SDG 3 – a goal to promote world well-being. 

These factors create a fertile landscape in which funds such as F&B Fund II are in prime position to generate returns for their investors. Capital commitments resulted in a significantly oversubscribed close for F&B Fund II, with backing from a diverse investor base composed of leading university endowments, financial institutions, funds of funds, and family offices, along with a substantial sum committed from the partners of Shore.

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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