WM Partners Closes Debut Fund
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WM Partners Closes Debut Fund

Middle market investor WM Partners has held a final close of the firm’s first fund, HPH Specialized Fund 1, LP, with over $307 million in commitments. The new fund closed on June 30th, 2017 and exceeded the target of $300 million.

Fund I received support from North America, Latin America and European investors including fund of funds, global private equity investment and advisory firms, insurance companies, and family offices. The new fund’s anchor partner was New York-based Vanterra Capital – an investor in private equity firms with specialized strategies and a direct investor in lower-middle-market companies with transaction values between $20 million and $300 million.

WM Partners specializes in growth equity and buyout investments in the health and wellness sectors. Typical targets will have revenues from $20 million to $60 million, be cash flow positive, and will be located in North America and Europe. WM Partners was co-founded by Alejandro Weinstein and Jose Minski and is based in Ft. Lauderdale (www.wmplp.com).

Mr. Weinstein is the former CEO of CFR Pharmaceuticals, a Chilean pharmaceutical company engaged in the development, production, and sale of pharmaceutical drugs, which has been owned by Abbott Laboratories since 2014.  Mr. Minski is the former co-founder and COO of Trolli, a maker of gummi candies that was sold to Favorite Brands International, then a portfolio company of Texas Pacific Group.

The principals of WM contributed the Fund’s foundational investment through an in-kind contribution of the equity of Wellnext Holdings, a nutritional supplements company that was founded by Messrs. Weinstein and Minski in 1986. Wellnext is a manufacturer, packager and marketer of solid dose, softgels, gummies, and powders under an array of brands including Blessed Herbs, Champion, Health Resources, Iceland Health, Nutri-Health, Rainbow Light, Sedona Labs and others. The company sells its products through specialty retailers, online, and direct to consumer channels. Wellnext is based in Sunrise, FL (www.wellnexthealth.com).

Fund I’s strategy is to invest $15 million to $75 million of equity to acquire lower-middle market companies with leading brands in the vitamins, minerals and supplements (VMS) and natural personal care sectors and will integrate them under Wellnext Holdings. To date, Fund I has closed on three acquisitions: Vitamin Research was acquired in November 2015, Stop Aging Now was acquired in February 2016; and Natural Vitality was acquired in March 2016. A fourth acquisition was closed last week and will be announced shortly.

“We are pleased to have successfully reached our Fund’s target as we have an active pipeline of internally generated acquisition opportunities that we intend to execute over the next few years,” said Mr. Weinstein. “With these potential acquisitions, we strive to become one of the leading players in the natural VMS space.”

© 2017 Private Equity Professional | July 25, 2017

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