Bansk, with JAB, Vestar, TPG pedigree, sets ambitious path for debut

Emerging managers, especially first-time funds, have a tough road in the crowded fundraising environment. The firms that are successfully attracting capital generally are those formed by executives from larger shops, who have relationships with investors, and who have targeted strategies that fulfill a need in investors’ portfolios.

In other words, they have a reason to exist.

With those themes in mind, Bansk Group, with pedigree in the branded consumer world, through JAB Holdings, TPG and Vestar, is in the market with an ambitious debut fund, sources told Buyouts.

The firm is targeting $1 billion for its first fund, which is in the market now and has held a first close, a source said. It’s not clear how much Fund I raised so far. The firm managed about $490.3 million as of December 31, according to Bansk’s Form ADV. Lazard is working as placement agent on the fundraising, according to a Form D fundraising document filed last year.

Bansk, formed in 2019, targets investments in consumer packaged goods that require capital of up to $400 million, according to the firm’s Form ADV. Bansk partners with brands across four categories: household products, beauty and personal care, consumer health and food and beverage. It brings an operational approach to its investments, according to the ADV.

Last year, the firm agreed to acquire Arcadia Consumer Healthcare, a market for over-the-counter medicines, vitamins and nutritional supplements, from Avista Capital.

Bansk is led by a partner group, including senior partner Bart Becht, a former senior partner and chairman of JAB Holding and former CEO of Reckitt Benckiser, a global branded consumer goods company.

Other senior leaders are partners Chris Kelly, who joined from TPG Growth, where he co-led the consumer and retail focus; David Poulter, who came from Reckitt Benckiser, where he worked in various senior vice president roles; and Brian O’Connor, senior partner and chief investment officer, who joined from Vestar Capital Partners, where he worked as managing director and co-head of the consumer group. Bill Mordan, senior partner and general counsel, joined from global pharmaceutical company Shire.

The firm also recently hired Emily Melchior, who joined after working at first-time manager Crosspoint Capital, as head of investor relations, according to Bansk’s website.

Fewer LPs are set this year to back first-time funds. Private Equity International’s LP Perspectives 2022 Study found 42 percent of respondents saying they are “just as likely” or “more likely” to commit to these funds, down from 51 percent in 2021.

Last year, some 553 first-time funds collected more than $46 billion globally, Preqin reports. That was down from the $52.8 billion raised by 572 funds globally in 2020. The peak was in 2017, when 924 funds globally raised $196.7 billion, according to Preqin’s information.

On the other hand, LP appetite for first-timers formed in spinouts from big, brand-name PE firms seems to have risen. Probitas Partners’ 2022 Institutional Investors Private Equity Survey found 71 percent of respondents are focusing on spinouts, up from 64 percent a year earlier.