Main Post Partners has raised its first fund, Main Post Growth Capital LP, with $400 million in capital. The fund backs lower middle-market companies, primarily in the consumer goods and manufacturing sectors.
The San Francisco PE firm has received commitments from college endowments, insurance companies, family offices, pension funds and high net-worth individuals. The fund is investing $25 million to $75 million of equity in businesses with up to $25 million in Ebitda, and will look to partner with management teams. Main Post has already begun backing companies, such as gym operator Chuze Fitness and motorcycle rental service EagleRider. The fund exceeded its initial target of $250 million.
“The lower middle market is less susceptible to economic movement. You can find pockets of growth,” says managing partner Jeff Mills. “We think there are more opportunities with new business formations,” adds managing partner Sean Honey.
Main Post was founded in 2014 by a group of former Weston Presidio partners. Some of the team’s past notable investments at Weston Presidio include stakes in restaurant chain Jimmy John’s and Too Faced Cosmetics. The latter was sold to General Atlantic in 2015.
PE Firms have been actively raising funds recently. CVC raised a $1 billion fund to back mid-market technology companies; Thoma Bravo raised a lower middle-market software fund; and Waud Capital Partners closed its fourth fund.
Ropes & Gray represented Main Post. M20 Private Fund Advisors LLC served as the placement agent.