BOSTON, [Current Date] – Yellow Wood Partners, a distinguished private equity firm headquartered in Boston, today announced the successful closing of its latest fund, Yellow Wood Capital Partners III, L.P. The fund reached its target and hard cap of $750 million in capital commitments from limited partners, signaling strong investor confidence in Yellow Wood’s focused strategy and operational expertise within the consumer brand sector. The oversubscribed fund attracted both returning long-time investors and a select group of new institutional investors, including university endowments and family offices, underscoring the firm’s compelling value proposition.
Yellow Wood Partners will continue its proven approach with Fund III, partnering with management teams to accelerate the growth and operational efficiency of consumer brands. The firm’s proprietary Consumer Operating DNA methodology will be central to transforming portfolio companies into dominant players within their respective consumer categories. This hands-on approach and deep sector expertise are key differentiators for Yellow Wood Partners in the competitive private equity landscape.
Dana Schmaltz, Partner at Yellow Wood Partners, commented on the fundraise success: “The exceptional demand for Fund III from our existing limited partners, who increased their commitments, is a testament to their confidence in our team and strategy. We are also delighted to welcome a select group of sophisticated new investors to the Yellow Wood family. Our core investment philosophy remains consistent: to identify and cultivate brands with significant growth potential. This successful fundraise empowers Yellow Wood Partners to continue building platforms and applying our intensive operational focus, in close collaboration with entrepreneurs and management teams, to generate substantial value for our investors. We extend our sincere gratitude to all of our limited partners for their continued support.”
Fund III has already made its inaugural investment with the creation of Beacon Wellness Brands, a platform focused on the sexual wellness market. Beacon Wellness markets and distributes sexual wellness devices under the leading PlusOne® brand, available at major retailers such as Target, Walmart, CVS, and Walgreens, and the Deia brand. Furthermore, Beacon Wellness encompasses a personal care division that manufactures facial skincare and grooming products under the Plum Beauty™ and Clio® brands, showcasing the breadth of Yellow Wood Partners’ investment scope and operational capabilities.
The investor base for Fund III comprises a carefully curated group of large and sophisticated institutions, including university endowments, foundations, private pension funds, financial institutions, and family offices. Yellow Wood Partners’ dedicated team consists of 14 experienced investment professionals and seven operating partners, bringing a wealth of knowledge and operational expertise to support portfolio company growth.
Tad Yanagi, Partner at Yellow Wood Partners, added perspective on the current market: “We are focused on the resilient consumer goods sector, which continues to demonstrate robust growth even amidst global challenges. The Yellow Wood Partners team is ideally positioned to identify high-potential companies and navigate complex corporate carve-outs. We are committed to partnering with management teams to transform promising brands into global leaders.”
Yellow Wood Partners boasts a diverse and high-performing portfolio of consumer brands. Notably, the firm reunited the iconic global footcare brands Dr. Scholl’s and Scholl under single ownership after more than three decades of separation. This strategic move created a powerhouse in footcare, generating over $700 million in annual retail sales. The portfolio also includes leading beauty and personal care brands such as Real Techniques and EcoTools in the beauty tools category; self-tanning brands Isle of Paradise, Tanologist, and Tan-Luxe; skincare brands Freeman Beauty and the innovative, recently launched BYOMA; and within its Beacon Wellness platform, the sexual wellness brands PlusOne and Deia, and personal care brands Plum Beauty and Clio.
Yellow Wood Partners’ previous fund, closed in 2017, was also oversubscribed, securing $370 million in limited partner capital commitments, demonstrating a consistent track record of investor confidence and successful fundraising.
Proskauer Rose LLP served as legal counsel to Yellow Wood Partners for the Fund III fundraising, and PJT Partners LP (Park Hill) acted as placement agent for select limited partner interests in Fund III.
About Yellow Wood Partners
Yellow Wood Partners is a Boston-based private investment firm specializing exclusively in the consumer industry within the middle market. The firm strategically acquires branded consumer products sold across diverse channels, including mass retail, drugstores, grocery, specialty stores, value retailers, club stores, and e-commerce platforms. Yellow Wood Partners’ investment and operational strategy, centered around its proprietary Consumer Operating DNA, provides functional operating resources to optimize brand performance. This approach focuses on driving organic growth, enhancing operational efficiencies within platform entities, and executing accretive add-on acquisitions to further accelerate growth and increase equity value. For additional information about Yellow Wood Partners and its portfolio, please visit www.yellowwoodpartners.com.
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