Prelude Growth Partners Closes $600 Million Fund III

Growth equity firm Prelude Growth Partners announced today the close of its third fund with $600 million in total commitments. The close brings Prelude’s total assets under management to $1.3 billion.

The overscribed Fund III was backed by endowments, charitable foundations, public pension funds, global institutions and family offices. The fund aims to commit between $15 million and $75 million each to high-growth businesses across branded consumer categories, including food and beverage, beauty and personal care, health and wellness and pets.

“This [raise] is a testament to how much the limited partner community values a disciplined approach. We look forward to partnering with truly exceptional entrepreneurs who are setting the pace of innovation in their categories,” said Neda Daneshzadeh, managing partner and co-founder of Prelude, in a statement.

“We are here to support founders in building the iconic brands of the future,” added Alicia Sontag, co-founder and managing partner of Prelude. “We leverage our deep consumer experience and insights with our partner brands and provide powerful expertise in building successful brands at a large scale.”

Founded in 2017, Prelude supports “brands made for the new modern consumer” by providing category experience and value-added operational support. Its food and beverage investment portfolio includes Riverside Natural Foods (Made Good), Bachan’s, So Good So You, Banza and Fly By Jing.

Prelude’s Fund III is more than double the size of its second vehicle, which collected $250 million in February 2021. Fund II deployed between $10 million and $40 million in capital across 10 deals.

Proskauer Rose LLP served as legal counsel for Fund III. No placement agent was used.