Monogram Capital Partners Closes Its Third Fund
Monogram Capital Partners, a distinguished private equity firm based in Los Angeles, has officially closed its third fund, Monogram Capital Partners Fund III, at a remarkable $350 million hard cap. This closing not only marks a significant achievement for Monogram but also highlights the firm's commitment to fostering consumer brands and the supply chain businesses that support them.
A Strong Showing in Investor Commitment
The success of Fund III, which was substantially oversubscribed, reveals the growing confidence from both returning and new investors. Monogram's regulatory assets under management have surged to an impressive total of approximately $1.75 billion. This significant capital influx is a testament to the solid partnerships Monogram has cultivated since its inception.
Understanding Monogram's Investment Strategy
Monogram typically partners with founders and family-owned consumer businesses as their first institutional investor. This approach allows Monogram to help scale and professionalize these businesses while preserving their unique entrepreneurial cultures. Unlike many private equity firms that solely focus on consumer brands, Monogram takes a holistic view by also supporting supply chain and service businesses, creating a synergistic relationship that fuels growth and value creation.
Insights from the Co-Founders
Jared Stein, the Co-Founder and Partner at Monogram Capital, shared, "Our mission has always been to build enduring consumer businesses by combining deep operational expertise with a long-lasting partnership mindset." This philosophy drives Monogram to connect family-held businesses with institutional capital, helping them grow in a sustainable manner.
Impressive Performance Metrics
Monogram's disciplined investment strategy has led to remarkable results, with a portfolio reflecting approximately threefold revenue growth and significant EBITDA margin expansion across all investments made five years ago or more. The firm is known for its insightful operational approach, leading to a diverse portfolio that spans essential service providers and innovative disruptors.
Highlighting Key Investments
Notable investments include:
- OLIPOP, a pioneering functional soda brand valued at $1.85 billion.
- Archer, a better-for-you meat snack platform that scaled 50 times to around $350 million in gross revenue.
- Grand Fitness, a noteworthy national franchisee of Planet Fitness.
- Kidfresh, a leader in better-for-you frozen foods distributed nationwide.
- Precision Tri-State, one of the largest garage door repair franchises in the country.
- D.S. & Durga, a premium fragrance business.
- Vasco, a growing provider of sports-surfacing services to K-12 schools.
- Chewy.com, a leading specialty pet retailer sold to PetSmart for $3.3 billion.
The successful exit from Western Smokehouse, a 40-year family-held business that Monogram scaled significantly, further illustrates the firm’s track record in extending family business legacies while creating substantial value.
Strategic Objectives Moving Forward
With the closing of Fund III, Monogram is poised to continue refining its investment strategy across four main verticals: Food & Beverage, Beauty & Personal Care, Pet, and Consumer/Business Services. The firm is planning to enhance its investment team as well as its operating partner program, aiming to further institutionalize its platform and amplify the growth of its portfolio.
Building for the Future
Co-Founder Oliver Nordlinger emphasized the potential for growth, stating, "With this fund's closing, we will add greater depth to our team and resources across the firm." These initiatives are designed to establish a robust foundation for Monogram and support its vision of nurturing the next generation of consumer businesses.
About Monogram Capital Partners
Headquartered in Los Angeles, Monogram Capital Partners has established itself by managing approximately $1.75 billion in regulatory assets under management. The firm focuses on investing in leading consumer businesses, their supply chain partners, and service providers through a collaborative approach. By being the first institutional partner for entrepreneurs and family owners, Monogram strives to help them create sustainable, category-leading businesses.
Frequently Asked Questions
What is the purpose of Monogram Capital Partners Fund III?
The fund aims to support the growth of consumer brands and the supply chain businesses that support them, generating sustainable long-term value.
Who are the key investors in Fund III?
Fund III has attracted commitments from both returning limited partners and new institutional investors, including endowments and family offices.
What sectors does Monogram focus on?
Monogram focuses on core sectors like Food & Beverage, Beauty & Personal Care, Pet, and Consumer/Business Services.
How does Monogram create value for its portfolio companies?
Through a hands-on operational partnership model that combines deep industry expertise and strategic operational support.
What is the significance of the recent exit from Western Smokehouse?
This exit exemplifies Monogram's capability to scale family-held businesses, ultimately extending their legacy while generating value.
