Private equity firm Yellow Wood Partners has announced the closing of Fund III with its target of US$750m of capital commitments.
The owner of brands including Real Techniques, Isle of Paradise, Dr. Scholl’s and Scholl said the new fund was oversubscribed and included capital commitments from many of its long-term limited partners, as well as the addition of a number of new investors, including university endowments, family offices and other institutional investors.
Dana Schmaltz, Partner at Yellow Wood, said: “We had very strong demand from investors in our previous funds who continue to support us with higher commitments and we are very pleased to complete Fund III with the addition of a small and select group of highly sophisticated new investors to the Yellow Wood family.
“Our investment focus remains the same as it has been for more than a decade as we seek to find and work with brands to help them grow.”
The Boston, US-based firm recently completed its first investment from Fund III with the formation of sexual wellness platform Beacon Wellness Brands, which markets and sells sexual wellness devices under the PlusOne and Deia labels.
“We invest in a dynamic consumer goods sector that continues to experience dramatic growth, even during the current challenging environment as the global pandemic has impacted consumer consumption of most brands,” added Tad Yanagi, Partner at Yellow Wood.
“Our Yellow Wood team is well positioned to continue to identify high-growth companies as well as complex corporate carve outs where we can partner with management teams to build market leading brands into true global businesses.”
In addition to the aforementioned brands, Yellow Wood’s portfolio also incorporates EcoTools, Tanologist and Tan-Luxe, as well as Freeman Beauty, BYOMA, Plum Beauty and Clio.
Yellow Wood completed its prior fund in 2017, which was oversubscribed with $370m of limited partner capital commitments.
