Castanea Partners has closed the firm’s fourth fund, Castanea Partners Fund IV, LP (Fund IV), with $600 million in capital commitments. The firm’s third fund had $575 million in commitments and closed in 2007.
Fund IV received commitments from a small group of institutional investors, including endowments, foundations, family offices, and pension funds. As has been the case since the inception of the firm, Castanea’s principals contributed significant capital to the new fund. The firm now has over $1 billion in assets under management.
“We have been privileged over the years to have the support of a wonderful group of limited partners, and we are thrilled as well with the quality and commitment of our investor group in Fund IV. We will continue to focus on investing in great consumer companies and are committed to working hard to justify our investors’ trust in Castanea,” said Robert Smith, Managing Partner and co-Founder of Castanea.
Concurrent with the fund close, Castanea promoted Steve Berg to Managing Partner. Mr. Berg joined Castanea when it was launched in 2002. He has over sixteen years of experience in consumer products and retail brands. Prior to Castanea, Mr. Berg was with Bain Capital and Bain & Company.
“Steve has been a valued partner and significant contributor to the development and success of Castanea Partners. He has led a number of the firms’ successful investments and worked closely with management teams to drive value for our limited partners. We are proud to recognize his leadership in the firm and the industry,” said Brian Knez, Managing Partner and Co-Founder of Castanea.
Castanea Partners invests from $15 million to $75 million in companies that operate in the consumer brands, marketing services, and information services sectors. Castanea participates in leveraged buyouts, growth and acquisition equity investments, and operationally challenging situations. Castanea is headquartered in Newton, MA (www.castaneapartners.com).
The close of Fund IV comes on the heels of recent investments made by Castanea’ third fund: Aurora Brands, the owner of two iconic American luxury home and lifestyle brands, MacKenzie-Childs and Jay Strongwater; Essentia, a provider of enhanced, high alkaline water; and 4moms, a company that develops and markets branded juvenile products that incorporate robotics in their designs.
Harpeth Capital (www.harpethcapital.com) served as a fund consultant and Ropes & Gray (www.ropesgray.com) served as fund counsel.
2014 PEPD • Private Equity’s Leading News Magazine • 10-6-14
