San Francisco Consumer Shop Makes Quick Progress on Fund II

Firm: Encore Consumer Capital

Fund: Encore Consumer Capital II LP

Target: $200 Million

Amount Raised: $100 Million

Placement Agent: MVision

Legal Counsel: Latham & Watkins

Encore Consumer Capital, a buyout shop that focuses on buying and transforming small consumer product companies, has held an interim $100 million close on its second fund, Encore Consumer Capital II LP, according to a source with knowledge of the firm’s plans.

The San Francisco-based firm, which oversees $175 million in committed capital, was founded in 2005 by Scott Sellers and Robert Brown, who both hailed from Swander Pace Capital, another consumer products private equity firm, as well as Gary Smith, who founded Encore Associates, an affiliated firm that offers strategic advice to the consumer products industry.

Encore Consumer Capital mainly invests in food and beverage companies, makers of personal-care and household products, as well as the makers of sporting goods and pet products.

The company seeks out U.S. companies that have revenue of $10 million to $100 million, as well as positive cash flow. Encore does not invest in restaurants or retailers, according to a company memo.

The firm started raising Fund II in mid-October and it has an overall target of $200 million, according to the source. The fund is set to make equity investments of between $5 million and $20 million.

Portfolio investments of Fund I include Ciao Bella Gelato, which it still owns, and Aidells Sausage Co., which it sold to Sara Lee Corp. last June for $87 million.

Investors in the new fund include funds of funds and family offices. The fund’s placement agent is MVision and its legal counsel is Latham & Watkins.