US food and beverage specialist firm Arbor Investments has closed its Arbor Investments Fund IV on $765 million and its first debt fund on $125 million.
The firm completed fundraising for the oversubscribed Fund IV in just 90 days, according to its chief executive Gregory Purcell.
Investors in Fund IV include the Texas County and District Retirement System, which committed $50 million, according to PEI Research and Analytics. Investors to the firm’s $400 million Fund III, which hit its hard cap, included Illinois Minucipal Retirement Fund, and fund of funds managers including Pantheon Ventures, Standard Life Investment Private Equity and ATP Private Equity Partners.
Fund IV will follow the same strategy as its predecessors, investing in mid-market food and beverage specialist companies. The Chicago-based firm has invested in 44 companies in industries including frozen foods, baked goods, dairy, protein, food-service equipment, bottling and distribution.
The Debt Opportunities Fund I was raised to provide a source of subordinated debt to Fund IV portfolio companies, enhancing its ability to structure and execute investments, according to a press release.
“Fund IV and DOF I will allow us to continue to target companies that are at an inflection point in their development or are undergoing a significant ownership or management transition and that will benefit from Arbor’s strategic vision and considerable expertise in the food and beverage industry,” said Arbor Investments president Joseph Campolo.
Active portfolio companies include DPI Specialty Foods, sweets company Frtizie Fresh, Hudson Baking Company, Mister Cookie Face and PBF Pita Bread Factory.
Shannon Advisors was the placement agent for the funds.