Butterfly closes $1 billion food-focused fund, approaching $4 billion in assets under management
LOS ANGELES–(BUSINESS WIRE)–Butterfly, a Los Angeles-based private equity firm specializing in the food sector, recently announced the closing of its second fund. Almost doubling in size from the previous vintage, the fund closed with $1 billion in commitments from a wide range of partners, including institutional investors, family offices, entrepreneurs and food investors. Together with its previous fund and co-investments, Butterfly has nearly $4 billion in assets under management. The announcement comes after Butterfly signed a definitive agreement to acquire QDOBA from Apollo Global Management and merge it with its existing brands to form a leading fast casual dining platform in North America with nearly 800 restaurants. . Additionally, Butterfly and Bolthouse Farms (the #1 premium chilled beverage brand and largest supplier of carrots to North American retailers) announced the acquisition of Evolution Fresh from Starbucks earlier this month, accelerating Bolthouse’s leadership in the retail premium juice and chilled beverage categories. Butterfly also sold a majority stake in Orgain, the leading plant-based functional nutrition platform in the United States, to Nestlé Health Science earlier this year.
Launched in 2016 by Adam Waglay, a former executive of KKR, and Dustin Beck, a former executive of Vista Equity Partners and Riot Games, Butterfly invests in vital and innovative food companies spanning the entire value chain, from “seed to fork “. Butterfly thinks this opportunity set is huge and supported by strong secular tailwinds that remain recession resistant. Butterfly partners with founders and leadership teams to transform businesses and accelerate growth with highly specialized operational resources led by former KKR executive Derick Prelle, partner and head of portfolio operations at Butterfly. Butterfly’s other investments include category leaders in the food sector, such as Chosen Foods (an industry leader and pioneer in avocado oil and creator of avocado staple foods), MaryRuth Organics (a leading and rapidly growing health and wellness brand operating in the vitamin, mineral and supplement industry), Pete & Gerry’s Organic Eggs (the nation’s leading producer of organic, free-range and pasture-raised eggs), and Pacifico Aquaculture (the world’s only producer of farm-raised striped bass).
“We are beyond thrilled to announce the closing of this second fund and are overwhelmed and grateful for the receptivity and support we have received from our investors and their confidence in our team,” said Adam Waglay, co-founder and co-CEO of Papillon. “When we launched Butterfly, we knew the opportunity for food business specialization across the entire seed-to-fork spectrum was significant, but it far exceeded our expectations in many ways, and is just the beginning. In these uncertain times, the food sector has become one of the most important sectors to invest in and we are honored to be on the edge of this new frontier as the partner of choice working with leaders, innovators and disruptors alike. industry leaders to drive transformational change and growth where it matters most.
Dustin Beck, co-founder and co-CEO of Butterfly, said, “We are thrilled to have this opportunity to partner with the founders and leadership teams on their journey to build strong businesses, especially in such a space. fun, exciting and disruptive within the food ecosystem. We have been able to bring a set of intangibles to the table beyond traditional financial partners, particularly around our operational and technological capabilities, to help our underlying companies realize their full potential. Today, consumers around the world care more than ever about doing business the right way. Across our portfolio, we have a strong focus on leadership by example in the food system, both with our philanthropic efforts and our commitment to positive impact, which is passionately embraced by Butterfly and its partners. , as evidenced by our commitment to B-Corp certify our investments and our company itself.
Passionate about making a positive impact through food, the Butterfly Equity Foundation was launched alongside the company’s foundation with the goal of improving the health and well-being of all by supporting greater access to nutritious foods. Food justice is at the heart of the Foundation’s giving, as Butterfly believes it is fundamental to physical and mental health, cultural identity, the environment and much more. The Foundation seeks to fulfill this mission by continuing the work of nonprofit organizations that provide nutrition security and promote healthy, affordable food retail in low-access neighborhoods. The Butterfly Equity Foundation is backed by Butterfly’s general partners, who have pledged to contribute 10% of their net earnings in addition to outside funds from individuals and businesses.
UBS served as placement agent and Kirkland & Ellis LLP served as legal counsel.
Butterfly Equity (“Butterfly”) is a Los Angeles, California-based private equity firm specializing in the food sector, spanning the entire food value chain from “seed to fork” through four verticals : agriculture and aquaculture, food products and beverages, food distribution and catering. Butterfly aims to generate attractive returns on investment through deep industry specialization, a systemized approach to sourcing transactions, and an operations-driven, technology-driven approach to value creation. For more information about Butterfly, please visit its website at www.bfly.com.
This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities or interests in any private fund or investment vehicle sponsored by Butterfly. Actual results may differ materially from the forward-looking statements contained herein. The selected Butterfly investments shown herein are provided solely to illustrate Butterfly’s investment strategy and direction as described herein, may not be representative of all transactions in a type or types of investments in general and In no way should be relied upon as legal, tax, regulatory or investment advice and should not be considered a specific recommendation of any particular security or holding company.