Traub Capital Partners is taking a significant stake in truffle specialist Sabatino Tartufi, Traub co-managing partner Mortimer Singer tells Richard exclusively.
Why it's the BFD: With the investment, the New York-based PE firm has nearly deployed all the capital raised for its first fund and now plans to go to market with its second fund in the fourth quarter.
Details: Three Hills Capital Partners is investing alongside Traub in Sabatino.
· Sabatino sells truffle honey, truffle zest and truffle chips in Whole Foods.
· The plan is to expand the company's existing fresh truffle business, its industrial business that serves restaurants, and its CPG business.
· Singer declined to comment on the size of the investment in family-owned Sabatino or whether it was for a minority or majority stake.
The intrigue: The truffle flavor, once reserved for high-end restaurants, is now making its way onto quick-service restaurant menus such as at Shake Shack, which offers truffle fries and burgers.
· And the opportunity is bringing the truffle flavor to the masses.
What's next: Traub, which specializes in middle-market consumer-facing companies, plans to raise around $300 million for its next fund, Singer says.
· The firm's LPs consist of family offices and leading executives in the consumer sector.
By the numbers: The firm has north of $200 million in assets under management, Singer says.
· It invests in well-established consumer-facing businesses, have revenue between $50 million and $100 million, and profit margins of between 15% and 20%, he says.
· It can either acquire minority or majority stakes and is solely an equity investor.
Flashback: Traub, historically a retail advisory firm founded by veteran Bloomingdale's executive Marvin Traub, announced the first close of its first fund in 2019
· Investments include Mana, a manufacturer of branded and private label prestige beauty products, Signature Brands, a manufacturer of dessert decorating products, and Hits, the largest producer of equestrian events in the U.S
Above Illustration: Aïda Amer/Axios