Rosser Quits Bruckmann For Own Shop

Hal Rosser has left New York-based private equity firm Bruckmann, Rosser, Sherrill & Co. to launch a new private equity firm with colleagues Jacob Organek and his son, Luke Rosser. He was one of the founders and managing directors of the firm. His departure came as the firm made its first exit from its third fund.

In a statement released by Bruckmann Rosser, the departing partner said that founding his own shop represents “a long-time dream and this is the right time to pursue it.” Rosser also indicated he will continue to be an investor with his former firm following his departure. Within days, Rosser announced the launch of Rosser Capital Partners, to be based in Greenwich, Conn., and to focus on restaurant investments, in addition to consumer and multi-unit retail companies.

Because Bruckmann Rosser’s key man provision would require two, and not one, of its four most senior members to depart in order to constitute a breach, the defection of Rosser for his father-and-son endeavor does not get the remaining team in hot water with LPs, Stephen Sherrill, one of the remaining founders, told peHub, a sister Web site to Buyouts. Sherrill and Thomas Baldwin, another of Bruckmann’s most senior members, that the move has no impact on the firm’s third fund, which is only about 25 percent deployed and has about 36 months remaining on its initial investment period. At this time, they said, there are no plans established to begin engaging LPs on a BRS Fund IV.

Bruckmann, Rosser, Sherrill & Co., which will continue to operate under its same identity, was launched by Rosser, Bruce Bruckmann and Sherrill in 1995 after leaving Citicorp Venture Capital. In 2000, the PE firm’s leadership was expanded to include Baldwin.

Luke Rosser joined the private equity firm in 2009 as a senior associate; Organek joined Bruckmann Rosser Sherrill & Co. in 2003 as an analyst after working at Lehman Bros.

The news of Rosser’s departure came as Bruckmann Rosser that it made its first exit from its third fund, BRS Fund III, selling Seroyal Holdings LP to Atrium Innovations Inc., a Quebec-based provider of dietary supplements for the health and nutrition industry. Seroyal, headquartered in Richmond Hill, Ontario, sells branded nutritional supplements and homeopathic remedies to health care practitioners in Canada and the United States. The firm acquired Seroyal in 2004 through its second institutional fund from company founder Rosetta Raso, who maintained a significant minority stake. In 2009, Bruckmann Rosser said it made a follow-on investment through its current fund to finance the acquisition of Pharmax LLC, a competitor based in Redmond, Wash.