The Rise of Forward Consumer Partners: Tapping into White Space in Private Equity
When Matt Leeds stepped down as a partner with L Catterton at the end of 2022, his bet was that there’s still white space in the crowd of consumer-focused private equity. Leeds believed that there was an opportunity for control-style investing in smaller, enduring companies in the consumer sector. This led him to co-found Forward Consumer Partners (FCP), a private equity firm focused on the consumer packaged goods (CPG) industry.
Investors Back Forward Consumer Partners with $425M Debut Fund
Investors shared Leeds’ vision for the white space in consumer-focused private equity, as evidenced by the successful fundraising efforts of Forward Consumer Partners. The firm raised an impressive $425 million for its debut fund in just six months. This strong investor support highlights the belief in FCP’s strategy and the potential for returns in the consumer sector.
Matt Leeds Sees Opportunity in Control-Style Investing for Smaller Consumer Companies
Matt Leeds, co-founder of Forward Consumer Partners, sees an untapped opportunity in control-style investing for smaller, enduring consumer companies. While there are established consumer-focused private equity firms that have scaled up, there is still room for FCP to make an impact. Leeds believes that focusing on smaller companies that have the potential for long-term growth can yield attractive returns.
FCP’s Strategy: Concentrated Fund Portfolio with a Focus on CPG Companies
Forward Consumer Partners plans to create a concentrated fund portfolio consisting of five to seven companies. This strategy allows FCP to closely focus on each investment and actively contribute to their growth and success. Additionally, FCP has a specific focus on CPG companies that have low volatility. This means that FCP will avoid investing in industries such as restaurants, beauty brands, or celebrity brands, but will target food, personal care products, and other low-volatility CPG companies.
2024 Outlook: Expect a Surge of New Consumer-Focused PE Firms
Looking ahead to 2024, industry experts anticipate a surge of new consumer-focused private equity firms. Leeds is not alone in recognizing the white space in the market and the potential for strong returns in the consumer sector. As established firms continue to grow and some reach saturation, experienced professionals are likely to launch new firms, leveraging their expertise and relationships to tap into the opportunities available in the consumer-focused private equity space.
Overall, Forward Consumer Partners’ successful fundraising efforts demonstrate the strong investor interest in consumer-focused private equity and the belief in the firm’s strategy. As FCP begins to deploy its capital and build a concentrated portfolio of CPG investments, it will be interesting to see how the firm navigates the evolving consumer landscape and delivers returns for its investors.
Analyst comment
Positive news: The Rise of Forward Consumer Partners: Tapping into White Space in Private Equity
Short analysis: With successful fundraising efforts and strong investor support, Forward Consumer Partners is well-positioned to capitalize on the untapped opportunity in consumer-focused private equity. As the market grows and more firms enter the space, FCP’s focused strategy on smaller, enduring consumer companies could yield attractive returns.
