Firm: TSG Consumer Partners
Fund: TSG6 LP
Target: $1 billion
Placement Agent: None
TSG Consumer typically invests $15 million to $100 million for control-stake or minority investments in consumer products or services companies generating EBITDA of $3 million to $50 million. Its portfolio has included several household names, including kitchen and bathroom cleaner Comet, dandruff shampoo Denorex and Smart Balance Foods.
The fact that TSG Consumer is seeking $100 million more than its $900 million previous fund, closed in 2007, suggests the firm’s consumer companies weathered the economic downturn fairly well. That fund was generating a 10.21 percent IRR as of Dec. 31, 2010, according to the
The firm is not employing a placement agent, according to a source familiar with the firm. “That will get raised quick,” the source said in an e-mail, adding that the firm has an “outstanding” track record. Another source close to TSG Consumer said that the fund would close soon, although he declined to discuss it further.
The firm and its founder, Chuck Esserman, have established a solid reputation over the years for some blockbuster returns. In 2006, the firm earned 13x its $40 million of invested capital in Glaceau Vitaminwater. Under the firm’s previous incarnation,
Esserman, who started his career at Bain & Co., co-founded The Shansby Group with Gary Shansby, the former CEO of Shaklee Corp., in 1987. In 2005, the firm changed its name to TSG Consumer Partners.
Calls to Esserman were not immediately returned.