Investment Firm Shore Capital Partners Secures Over $450 Million for Food and Beverage Fund III
In a significant move, Shore Capital Partners, a Chicago-based private equity firm with offices in Nashville, has announced the closing of its third food and beverage fund, Shore Capital Food & Beverage Partners Fund III (F&B Fund III). The fund raised over $450 million in capital commitments, bringing Shore Capital's total assets under management to approximately $13 billion.
F&B Fund III targets investments in lower middle market companies, specifically those generating revenues between $5 million and $100 million. Shore Capital's investment strategy emphasizes operational excellence, strategic discipline, and hands-on operational support to accelerate growth. The fund also leverages strategic mergers and acquisitions as a core part of its strategy to scale high-growth food and beverage platforms.
Shore Capital seeks to partner with founders and management teams, offering them access to a broader platform of resources and expertise. The fund's focus areas include food and beverage manufacturing, packaging, distribution, and specialty food brands with growth potential.
With Fund III, Shore Capital is expanding into subverticals like produce distribution, vending, and others where they see market fragmentation and demand for scaled resources. The fund was substantially oversubscribed, receiving support from both existing and new limited partners.
Kirkland & Ellis served as legal advisor to Shore Capital for the closing of F&B Fund III, and no placement agent was used. Shore Capital's food and beverage platform includes more than a dozen high-growth companies across specialty food brands, packaging, manufacturing, and distribution.
Justin Ishbia, Founder and Managing Partner of Shore Capital, stated that the close of the third food and beverage fund reflects the strength of their platform and the continued opportunity in the sector. He also highlighted that food and beverage is one of the most active and resilient areas of the lower middle market, with potential for growth through operational excellence and strategic discipline.
Richard Boos, Partner at Shore and leader of the firm's food and beverage strategy, mentioned that they have built a strong foundation in food and beverage by focusing on segments where their operational playbook can unlock substantial value. He also emphasized that the depth of their team has been key to driving results and they are excited to continue that momentum with Tom, Jeff, and Jeff's leadership as Partners.
Tom Smithburg, Jeff Smart, and Jeff Smith have been promoted to Partner at Shore Capital, a recognition of their impact within the food and beverage platform. In May 2025, Shore announced the recapitalization of Sweetmore Bakeries. Whetstone Distribution and FirmaPak were recently acknowledged as the region's fastest-growing companies.
Shore Capital's partners made substantial capital commitments to F&B Fund III, demonstrating continued confidence in the platform. The firm's approach is designed to unlock value in the resilient and active lower middle market segment of the food and beverage industry, supporting both existing and emerging brands.
- Shore Capital's investment strategy with the newly closed F&B Fund III focuses on growth companies within the food and beverage sector, targeting lower middle market companies with revenues between $5 million and $100 million.
- The fund's approach emphasizes operational excellence, strategic discipline, and hands-on operational support to foster growth in these companies, while also leveraging strategic mergers and acquisitions to scale high-growth food and beverage platforms.
- In personal-finance terms, investing in Shore Capital's F&B Fund III could potentially offer high returns through the growth of these food and beverage businesses, as the fund has a strong track record and is backed by substantial capital commitments from Shore Capital's partners.
