First-timer Bansk collects $800m for consumer packaged goods focus

Bansk Group, formed to invest in consumer packaged goods businesses across several sectors, raised $800 million for its debut fund, which is already more than halfway deployed, sources told Buyouts.

The firm is expected to announce the fund closing later today.

Bansk was among a group of first-timers scrambling for capital in the tough fundraising environment that emerged with rising inflation and interest rates. Limited partners have been mostly reluctant to back newer shops, content to stick with their deepest relationships.

Still, Bansk was able to attract an impressive haul, though it came under its initial $1 billion target. Bansk launched fundraising in 2021, working with Lazard as placement agent.

Formed in 2019, Bansk targets control investments in consumer packaged goods businesses that require capital of $100 million to $400 million. It brings an operational approach to its investments, according to its Form ADV.

The firm targets consumer packaged goods across four categories: beauty and personal care, consumer health, food and beverage and household products. The products are typically sold in grocery, drug, home improvement and online channels and purchased on a routine basis, the firm said.

The firm has made four investments so far, deploying more than 50 percent of the fund.

“The companies we’re investing in are consumer staples, non-discretionary. These companies have not been materially impacted by what’s going on in the economy and given the fact that they’re consumer staples, are less affected by the market environment,” according to Brian O’Connor, senior partner and chief investment officer at Bansk Group.

One example is Woodstream, a branded pest and animal control company. One of its branded products is Victor mouse traps, a non-discretionary product, said Bart Becht, senior partner and chairman of the firm.

“If you have mice in your house, you’re buying mouse traps, you’re not saying, ‘Maybe I’ll postpone my mousetrap purchases.’ These are resilient categories that are very predictable from a growth point of view,” Becht said.

Becht said the firm saw an opportunity to build a team that combined experience and expertise both in investing in and operating in the space.

Founder Becht was former CEO of Reckitt Benckiser, a global branded consumer goods company, as well as a senior partner and chairman of JAB Holding. O’Connor formerly worked at Vestar Capital, where he co-led the consumer group, and partner Chris Kelly previously worked at TPG Growth, where he co-led the consumer and retail focus.

“We have a strong team that has specialized in this field, both on the financial side and the operational side,” Becht said. “We have people in our group who have operating experience, so not only do we know how to source the right assets, we know how to help management run these assets.”

Its other investments include consumer health and wellness platform Arcadia Consumer Healthcare; a haircare platform that includes three brands; and Red’s All Natural, a frozen burrito and breakfast sandwich brand.

Bansk is among a group of first-timers to close a fund in the tough fundraising market. Check out Buyouts’ extensive database of emerging managers, including first-timers.