Shore Capital Partners Closes $450 Million Food & Beverage Fund III

Shore Capital Partners announced today the close of its third food and beverage fund with over $450 million in capital commitments. The close brings Shore’s total assets under management to approximately $13 billion.

The oversubscribed Fund III was backed by both existing and new limited partners, including university endowments, financial institutions and family offices. The fund will invest in companies with between $5 million and $100 million in annual revenue, accelerating growth through hands-on operational support and strategic M&A, per today’s announcement.

“Food and beverage remains one of the most active and resilient areas of the lower middle market, with meaningful growth potential through operational excellence and strategic discipline” said Justin Ishbia, founder and managing partner of Shore, in a statement.

Founded in 2009, Shore Capital invests in lower middle market companies in the healthcare, food and beverage, business services, industrial and real estate industries. It seeks to help management partners to “grow faster through access to capital, world class board and operational resources and networking and development.”

In 2022, the Chicago-based private equity firm closed its second Food & Beverage fund with $291.75 million. The fund was primarily used to invest in food and beverage manufacturing, distribution, packaging and related B2B service companies.

Shore Capital’s food and beverage investment portfolio includes more than a dozen companies, including software and services platform Roaming Hunger, baked goods producer Sweetmore Bakeries and dry and wet food manufacturer OWS Foods, Whetstone Distribution and packaging solutions provider FirmaPak.

Shore’s leads on the food and beverage fund are receiving promotions with the closing of Fund III: Tom Smithburg, Jeff Smart and Jeff Smith have all been named Partner in the firm.

“We’ve built a strong foundation in food and beverage by focusing on segments where our operational playbook can unlock substantial value,” said Richard Boos, partner at Shore and leader of the firm’s food and beverage strategy. “The depth of our team has been key to driving results, and we’e excited to continue the momentum with Tomm, Jeff and Jeff’s leadership.”