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Consumer Discretionary-Focused Buyout Fund Managers

by Nicholas Jelfs

  • 21 Dec 2011
  • PE

At this festive time of year, Preqin has investigated the consumer discretionary sector of private equity investing. Preqin’s Fund Manager Profiles product currently lists over 950 fund managers that target consumer discretionary buyout opportunities as part of a wider industry and investment focus. Of these fund managers, there are 35 that focus exclusively on the sector, making investments solely in consumer products and services, leisure, retail, restaurants, entertainment, publishing, education, and gambling. These firms have raised total aggregate commitments in excess of $5.5bn over the last 10 years, and have an estimated $2.5bn in dry powder still available for investments.

All of these 35 firms make buyout investments, but only 11 target buyout opportunities exclusively, with the remainder making a mixture of distressed, growth and venture capital investments as well. Twenty-four of the firms are based in North America, six in the UK, and the remainder across Asia and Europe. North America is the most highly targeted region for investment, with 25 of the fund managers indicating a preference for investing there, 22 of which exclusively invest there. The remaining firms principally invest across Europe, with five of the fund managers listing Asia as a target region for consumer discretionary opportunities.

KSL Capital Partners is the largest consumer discretionary-focused fund manager by total funds raised in the last 10 years. The Denver, CO-based firm has raised a total of $3.5bn in capital commitments over the period, and makes buyout investments in the travel and leisure sector across North America. The firm closed its latest fund, KSL Capital Partners III, in June 2011 at its hard cap of $2bn.

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