TSG Consumer Partners

TSG Consumer Partners is an American private equity company based in San Francisco, California. The firm was founded in 1986, and was among the first private equity firms to invest exclusively in consumer companies.[6][7]

TSG Consumer Partners, LP [1]
TypePrivate
IndustryPrivate equity, Consumer products
PredecessorThe Shansby Group
Founded1986 (1986)
HeadquartersLarkspur, California, California, United States
Key people
Charles H. Esserman (Chief Executive Officer and Co-Founder),[2]
Jamie O'Hara (President),[3]
Hadley Mullin (Senior Managing Director)[4]
ProductsGrowth capital focused on consumer-facing businesses
AUMUS$20 billion [5]
Number of employees
60
Websitewww.tsgconsumer.com

The firm also has offices in New York, Connecticut and London.[8]

History
The Shansby Group logo in use prior to 2005

The firm was founded in 1986 as the Montgomery Consumer Fund, a partnership with an initial equity interest from Montgomery Securities. In 1988 the firm's founders, J. Gary Shansby and Charles H. Esserman, repurchased Montgomery Securities' interest and renamed the company The Shansby Group. [9] The firm changed its name to TSG Consumer Partners in 2005 when Esserman became CEO. Shansby left the firm in 2005 to focus on philanthropic projects as well as health issues.[6] In March 2012, Jamie O’Hara was named President at TSG and Hadley Mullin was named Senior Managing Director in September 2014.[4][10]

The firm has been noted as an anomaly in the private equity industry for its high percentage of female employees: 50 percent of employees are women, compared to 13.7% of private equity professionals in North America.[11] In its most recent fund, TSG reported a net return of 50 percent, more than double the industry average.[11]

In March 2019, TSG opened an office in London, the firm’s first office outside the U.S.[12]

Investments

The firm is one of the largest and oldest private equity firms primarily focused on growth capital investments in early-stage and well-established consumer companies.[13]

TSG has invested across a number of consumer categories, including food and beverages, ecommerce, personal care, beauty, outdoor, automotive, pet care products and consumer technology.[13]

Among TSG's most notable past and present investments are well-known companies such as Backcountry.com, Canyon Bicycles, and Duckhorn.[14]

Funds

TSG closed its sixth fund, TSG6, in November 2011 with $1.3 billion. The seventh fund in the sequence, TSG7A and TSG7B, closed in November 2015 with $2.5 billion.[15][16]

The firm closed its eighth fund, TSG8 LP, in February 2019 with $4 billion.[17] The firm has approximately $10 billion in equity capital under management as of December 2020.[18]

The firm closed its ninth fund, TSG9 LP, in January 2023 with $6 billion. The firm has approximately $20 billion in equity capital under management as of January 2023.[5]

References
  1. "New buyout firm BayPine close to $6 billion Mavis Tire acquisition: sources" Reuters March 2, 2021
  2. "Charles "Chuck" Esserman". Bloomberg Profiles. Bloomberg. Retrieved 3 June 2016.
  3. Calvey, Mark (27 March 2012). "TSG Consumer Partners names O'Hara president". San Francisco Business Times. Retrieved 3 June 2016.
  4. "TSG Promotes Hadley Mullin to Senior Managing Director". The Wall Street Journal. September 30, 2014.
  5. "TSG Consumer Partners closes latest fund at $6 billion". PI Online. January 11, 2023.
  6. Shansby made money rescuing and nurturing orphan brands. San Francisco Business Times, February 28, 2010
  7. "Gary Shansby: Building his own brand" SFGate April 15, 2011
  8. TSG announces multiple promotions PE Hub
  9. Renamed Shansby Fund To Cut Montgomery Tie. New York Times, October 24, 1988
  10. "TSG Consumer Partners names O'Hara president". San Francisco Business Times. March 27, 2012.
  11. Picker, Leslie (3 December 2015). "Pursuing Gender Equality as a Competitive Advantage". The New York Times DealBook. Retrieved 3 June 2016.
  12. "TSG Consumer expands in Europe after raising $4bn fund". Financial Times. March 24, 2019.
  13. "TSG Casts Larger Net Across Wider Range to Catch Consumer Brands". The Wall Street Journal. April 13, 2019.
  14. "TSG Consumer Partners to Acquire Rough Country From Gridiron Capital". Business Wire, a Berkshire Hathaway company. June 29, 2021. Archived from the original on 18 August 2022. Retrieved 30 April 2023.
  15. Dorbian, Iris. "TSG racks up $2.5 bln for two consumer funds". The PE Hub Network. Retrieved 2 May 2016.
  16. "TSG closes TSG7 A and TSG7 B with $2.5B in total committed capital". Pitch Book. 9 December 2015. Retrieved 2 May 2016.
  17. "TSG Raises $4 Billion for Largest Fund Yet". The Wall Street Journal. February 4, 2019.
  18. "TSG Consumer Partners Announces Promotions". Bloomberg. December 23, 2020.
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