Fresh Source Capital Fund II, L.P.
United States of America
Last updated 11 May 2020, by Impactyield.
Fund II will continue the work of Fund 1. Fresh Source Capital Fund II, L.P. (the “Fund” or “Fund II”) will pursue investments in private companies with compelling teams and strong strategies to build and improve regional food systems and meet increasing and changing consumer and institutional demands for “better” food. The Fund, which is focused on North America, will utilize equity and convertible note instruments. The Fund may also invest in select income generating opportunities utilizing subordinated debt and royalty financing. The Fund will consider food and agriculture related businesses along the supply chain. Fresh Source Capital Fund II will expand upon the Fund I thesis and performance, focusing on companies creating premium products for which consumers are willing to pay higher prices, and/or improving efficiencies to increase the price competitiveness of local, “better” food. Target companies will have one or more of the following strategies:
Increasing regional supply through novel products and services by utilizing regional ingredients to meet consumer/institutional demands;
Building regional production and distribution capacity; and/or
Leveraging technology- especially Software-as-a-Service models to achieve scale and gain efficiencies.
The Fund will use both Debt and Equity instruments as with Fund I, L.P.
Key performance indicators
Asset manager: Fresh Source Capital
Product track record: Fund has 5 years of track record
Target IRR: 12%
Committed Capital: 0 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - committed capital
Inception year: 2017
Vintage year: 2018
Target close date: 01/12/2018
Product term: 10 year term
Assets under management: 25,000,000 USD (US Dollar)
Investment size: Min: 250,000; Max: 4,000,000; Avg: 2,500,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 2%
Carried interest: 20%
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: Many Fund I LP's are committing to Fund II.
Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
In addition to the investment themes and focus on market based financial returns, Fund II will evaluate target companies across several impact lenses, including their ability to strengthen regional economies, increase access and availability of “better” food, reduce waste, and support female founders, as well as other opportunities that may emerge within the food system.