Arbor Grabs $1.7 Billion of Dry Powder

Arbor Investments has closed its fifth fund, Arbor Investments V LP (Arbor V), with $1.5 billion of outside capital commitments. The firm has also closed its second captive subordinated debt fund, Arbor Debt Opportunities Fund II LP (Arbor Debt II), with $168 million of outside capital commitments.

The marketing and closing of these two funds was achieved in just three months – conducted entirely virtually – and brings Arbor’s total assets under management to $2.9 billion. In July 2016, the firm closed Arbor Investments IV LP with $765 million of capital and its first subordinated debt fund, Arbor Debt Opportunities Fund I LP, with $125 million of capital.

“We are humbled by the commitments from our longtime limited partners as well as the interest from new investors who have entrusted Arbor with their capital,” said Gregory Purcell, Arbor’s co-founder and CEO. “The quick and successful closing of Arbor Fund V, especially during this unique fundraising environment, is not only a testament to our outstanding investment track record but also a continued endorsement of the highly differentiated strategy we’ve refined over more than two decades. We anticipate tremendous opportunity to deploy this new capital with outstanding entrepreneurial families and blue-chip strategic players.”

Arbor invests from $100 million to $250 million of equity per transaction in food, beverage, and related companies. Since founding in 1999, the firm has acquired or invested in over 80 North America-based companies with a multiple on invested capital of 5.1x and an internal rate of return of 37%.

“Contrary to typical private equity firms, Arbor has always been focused on adding value beyond just capital and our results reflect this unconventional approach,” said Timothy Fallon, a senior operating partner at Arbor. “We’re firm believers in the advantages of industry specialization and our model is rooted in leveraging the firm’s experienced team of in-house resources to identify and execute transformative changes to our portfolio companies. It’s an operationally intense, all-hands-on-deck attitude that we believe drives value creation and positions us as the partner of choice to companies in the food and beverage sector.”

“Arbor’s brand is stronger than ever,” said Carl Allegretti, Arbor’s president. “We are honored to have earned the trust of our investors and I couldn’t be prouder of our people. To raise this amount of capital so efficiently in this unprecedented time is a testament to the strength of our team and the track record that has been built over the 21 years of Arbor. The best is yet to come.”

Shannon Advisors was the placement agent for this fundraise and Kirkland & Ellis provided legal services.

Arbor is headquartered in Chicago with an additional office in New York.

Private Equity Professional | October 16, 2020

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