August 2, 2017

VMG Partners has closed their fourth fund – VMG Partners Fund IV – at $550 million, with another $150 million available through a flex-up vehicle.

The capital will be allocated for investments in dynamic and emerging lower middle market CPG brands that post revenues between $5 million and $100 million. However, VMG takes a broad view of the size investments it is willing to make.

Wayne Wu, managing director at VMG explained to Project Nosh, “We have a number of investments that started at an equity investment of well less than $10 million. And we’ve written checks that are much larger than that, but we are certainly very comfortable writing checks less than $10 million with an opportunity to grow to larger checks over time.”

The existence of the flex-up vehicle also gives the firm the added ability for certain investments to surpass established thresholds on an as-needed basis.

Since its founding in 2005, VMG has made more than 20 investments in food and beverage, personal care, pet food, wellness, beauty, and alcohol brands that have grown to become leaders in their market spaces including, Justin’s, KIND, Pirate’s Booty, SunBum, Spindrift, and Babyganics.

“What we’ve learned over the years from fund one to fund four, is that we have a pretty good feel at a pretty early stage of getting to know the brand, whether this is something we want to be a part of,” Wu told Project Nosh. “There were earlier days where we would wait a bit and then invest [in the company] later. Now we’re making investments earlier than we ever have.”

VMG closed its third fund in the summer of 2015 at $500 million, and at the same time announced three investments in Health Warrior, Perfect Bar, and Vermont Smoke & Cure, while also announcing the sale of Canadian natural plant-based health and nutritional products company Vega to WhiteWave Foods for $550 million.

VMG closed its second fund in 2011 at $375 million, and throughout the years has been an active investor with a developed tool kit to deliver strategies and resources to entrepreneurs and management teams that leads to brand awareness and growth.

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.