Investment Strategy
Food / Beverage
HM Capital has invested over $745 million in equity in the U.S. food sector in more than 20 transactions, with a total transaction value of over $4 billion. HM Capital has experience investing in nearly every sector that comprises the $1 trillion food industry, including (i) all varieties of shelf stable products, such as canned goods, dry mix products, cereals, snacks and confectionary, (ii) perishable categories, such as fresh meat, and (iii) refrigerated and frozen products. Furthermore, the Firm has successfully invested in both branded and private label platforms, and its portfolio companies have successfully sold into all the amjor distribution channels, including grocery stores, mass merchants, club stores, convenience stores, dollar stores and foodservice distributors and operators.
Specific food opportunities are identified and evaluated with the aid of HM Capital's industry relationships, and to be actionable, investments must benefit from HM Capital's Change Capital investment strategy. In particular, HM Capital prefers situations that (i) are under-managed or have no management, as in the case of a divestiture of a single brand or product line whereby HM Capital is able to leverage its management relationships to supplement or populate an entire management team, (ii) have an inappropriate cost structure for the business with a substantial opportunity for savings by rationalizing expenses, and (iii) represent a growth opportunity that is under appreciated by others and can be readily executed and accelerated through the Firm's knowledge of the marketplace and relationship with potential customers.