By Lynda Kiernan, Global AgInvesting Media
VMG Partners has raised $850 million (in only three months!) to close its VMG Growth Fund V at its target and hard cap, and bringing its total AUM to approximately $2.6 billion.
The firm closed VMG Partners Fund IV at $550 million in August 2018, with an additional $150 million available through a flex-up vehicle, and closed its third fund in the summer of 2015 at $500 million.
Founded in 2005, VMG has targeted its investments toward brands it sees as able to capitalize on growing consumer trends. Over the years the private equity investors has backed some of the most well-known food brands on the market including Justin’s, KIND, Pirate’s Booty, Daily Harvest, Perfect Bar, Bare Snacks, Spindrift, and Babyganics.
VMG Growth Fund V will continue in this manner, investing in entrepreneurial early and late-stage consumer focused companies in the food and beverage, wellness, pet, and personal care sectors on their way to building iconic brands.
“VMG Partners was founded on our team’s mutual passion to build brands and support entrepreneurs,” said Mike Mauzé, general partner, VMG Partners. “In the past fifteen years VMG Partners has brought their expertise to the CPG space and during that time we have developed strong relationships with our investors. These long-term limited partners have been great assets and strategic mentors in building the VMG franchise.”
Wayne Wu, general partner with VMG, noted that the firm goes beyond capital to “support the broader consumer ecosystem of entrepreneurs, retailers, and global CPG strategic, regarding where the consumer is going versus where they’ve been historically.” He continued, “Through our genuine and consistent efforts to support the broader consumer ecosystem, we’ll have the opportunity to partner with best-in-class founders and teams to build leading brands.”
In addition to closing VMG Growth Fund V, VMG announced that as of the end of 2020, over the period of 15 years, it has also “substantially exited” all of its portfolio companies in VMG Growth Fund I, VMG Growth Fund II, and VMG Growth Fund II, and its third exit from VMG Growth Fund III.
And as VMG exits previous investments and its holdings evolve, it is targeting social benefits through its capital commitments as well as returns.
“We’re excited to continue to partner with founders who inspire us,” said Robin Tsai, general partner, VMG Partners. “We deeply value their ambition, and their motivation to create opportunities for women, BIPOC, and other underrepresented communities. As we continue our mission to partner with founders to build prominent brands, our goal is to spearhead more diversity and inclusion in the CPG space.”
This focus, and its massive war chest, are two factors that will likely buoy VMG against its competition with some of the world’s leading food giants who are also deploying venture capital to gain a foothold with new, elastic, and dynamic brands, such as General Mills’ 301 INC, Kellogg’s Eighteen94, Danone’s Manifesto, and most recently Mondelez, which launched SnackFutures, an early stage accelerator.
– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com
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