Recapitalizations and divestitures are the real opportunity for family offices in food & beverage.
After taking VC and Private Equity capital, many founders find themselves looking to buy out these same investors within a few years — simultaneously the funds are abandoning their underperforming deals. However, there are few options for divestures.
As we are experiencing the first round of early-stage activity in the food & beverage space, there is no clearly defined secondary market. This is the disconnect that family offices and middle-market acquirers can exploit.
By aligning with founders’ long-term interests and the desires of funds to divest on the sly, we gain access to companies other investors can’t reach — at a risk profile that looks a lot more like debt.