Manhattan Growth Partners launches

Manhattan Growth Partners (MGP) has launched as a new growth equity firm led by Dean Bosacki, former managing director with Friend Skoler & Co., and Patrick McBride, former partner with The Walnut Group.

Bosacki says that MGP is utilizing a fundless sponsor model with several family office investors, although he “hates” the term fundless sponsor.

“The traditional private equity fund model is kind of broken, and LPs love the transparency and shorter investment cycle that comes with what we’re doing,” he says.

A typical MGP deal will involve between $10 million and $15 million of equity, in exchange for control positions in growth-stage companies, he says. The firm will have official industry focus, although the partners’ backgrounds would suggest consumer products, lifestyle brands and services.

Its first investment is in a personal body care products maker Hugo Naturals. No financial terms were disclosed, although Bosacki says that it came in a bit under the bottom of the range of $10 million.

He adds that he and McBride have spent most of their time since the investment at the company’s Chatworth, Calif.-based headquarters, and that their goal is to be actively involved in the management of a limited number of portfolio companies.

“We both really wanted to be out on our own working on companies we love without spreading ourselves too thin,” he says. “It’s only been a couple months, but they’ve been among the most rewarding says of my career so far.” —Dan Primack