Westhook Closes Third Fund I Platform

Westhook Capital has made an investment in RainShadow Labs, a provider of private label manufacturing services to natural and organic personal care brands.

RainShadow’s services include product development and design; packaging and label procurement; contract filling; packaging warehousing; shipping, and logistics support.

Customers of RainShadow include independent brands, entrepreneurs, and skincare professionals. The company was founded in 1983 by Vanessa and Tim Johansson and is headquartered 40 miles north of Portland in St. Helens, Oregon.

“RainShadow is the platform for the skincare entrepreneur offering natural science-based formulations, flexible minimum order quantities, high-touch customer service, and timely speed to market,” said the Johansson’s in a released statement. “Our partnership with Westhook represents a unique opportunity to expand our capabilities and the value we deliver to our customers. With Westhook’s support, RainShadow will be able to further invest in our capabilities to support our customers and our team.”

“We have been extremely impressed with RainShadow’s team, culture and focus on supporting the skincare entrepreneur, and we appreciate the opportunity to continue that support and provide additional resources to RainShadow’s team and customers,” said Michael Hooks, managing partner at Westhook. “In addition, we believe the beauty and skincare industry is highly attractive and we are actively seeking additional investment opportunities in the space.”

Los Angeles-headquartered Westhook invests from $10 million to $50 million in US-based lower middle market companies that have revenues greater than $15 million and EBITDA greater than $3 million. Sectors of interest include consumer, industrial, business services and healthcare services.

Westhook held a final closing of its inaugural fund, Westhook Capital Partners LP, with $140 million in capital commitments in September 2018. Limited partners in the fund include university endowments, family offices, other institutional investors, and Westhook’s senior professionals.

RainShadow is Westhook’s third Fund I platform and follows investments in Santa Rita Landscaping, a Tucson, Arizona-based provider of commercial landscaping services (February 2020); and Metco Landscape, an Aurora, Colorado-based provider of landscaping installation and maintenance services in Colorado (September 2018).

RainShadow was advised on this transaction by Portland and San Francisco-based The Meriwether Group.

© 2020 Private Equity Professional | November 12, 2020

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