Yellow Wood Raises $370M For Oversubscribed Second Fund

Jul 27 2017 | 5:53pm ET

Private equity company Yellow Wood Partners, has raised $370 million in committed capital for its second buyout fund. 

The new fund, named Yellow Wood Capital Partners II LP, was oversubscribed, Yellow Wood said in a statement. It will have the same branded-consumer focus as its predecessor, and will invest in a limited number of platforms in consumer sector categories such as beauty & personal care, health & wellness, household, food & beverage, and pet care. Targeted equity investment for each portfolio company will be between $50-$150+ million.

Fund II was backed by a small group of eight sophisticated institutions, the company added, including several large university endowments, foundations and institutional investors. Yellow Wood recently completed the $1.425 billion sale of PDC Brands, a rapidly growing provider of beauty, personal care, and wellness brands, after quadrupling the company’s revenue and growing EBITDA by over five times.

Park Hill assisted the firm as placement agent for certain of the limited partnership interests, while Proskauer Rose LLP served as legal counsel. 

Based in Boston, Yellow Wood Partners was founded in 2005 and invests exclusively in the consumer industry in the middle market.  The firm seeks to acquire branded consumer products across a variety of channels including mass, drug, food, specialty, club and e-commerce. 

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