Shake Shack's Meyer Raises $220M For New Hospitality-Focused PE Fund

Oct 2 2017 | 10:33pm ET

Famed New York restaurateur and Shake Shack founder Danny Meyer has raised $220 million in capital commitments for a strategic growth equity fund that will invest into fine casual restaurants and hospitality-themed technology companies. 

The new fund, named Enlightened Hospitality Investments, was oversubscribed, according to a statement. It will make minority investments of $10-$20 million in companies that share the employee-focused ethos of Meyer’s Union Square Hospitality Group. In particular, the fund will identify and invest in scalable businesses with proven category leadership and a committed focus on building shareholder value, the statement added. 

“Enlightened Hospitality Investments allows us to find and fuel growth for best-in-class culture-driven businesses that are on the precipice of doing great things,” said Meyer in the statement. “EHI provides us with a strategic investment vehicle to formalize future transactions and bring the benefits of our experience and relationships to companies that share our passion for our team and community.”

The fund will be run by Mark Leavitt, CIO of USHG, and will have a dedicated team focused on finding and managing strategic investment opportunities, the statement continued. Four investments have already been made.

Meyer’s Union Square Hospitality Group was founded in 1985 with the opening of his signature Union Square Café. The company has since created some of New York’s best-known restaurants, cafes, and bars, and founded the Shake Shack fast casual chain in 2004.

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