New $75M Fund for Consumer Products
What happened
Cutting Horse, a private equity firm, has launched its first fund, raising $75 million to invest in consumer products and services. The new fund signals continued investor interest and capital allocation toward the consumer sector.
Why it matters
- The firm was co-founded by Chris Protasewich and Michael Wystrach, who previously collaborated for over a decade. Wystrach was the founder of the meal delivery service Freshly, which was acquired by Nestlé for $1.5 billion, with Protasewich being an early investor. - Cutting Horse's new fund exceeded its initial target of $50 million, closing at its $75 million hard cap in less than a year. This demonstrates strong investor confidence in their operator-led investment strategy. - The fund will make minority-stake investments of $1–10 million in consumer product and service companies that generate between $1–20 million in revenue. - The firm's investment philosophy is to act as an operating partner, providing hands-on strategic and operational support, not just capital. They aim for a concentrated portfolio, selectively partnering with a few founders each year. - The name "Cutting Horse" is inspired by the animal known for its precision and focus, reflecting the firm's disciplined, partnership-driven approach to investing. - Current and past portfolio companies include Promix Nutrition, Cassi, BetterWild, Feel Goods, SuperTeeth, and Butternut Box. - This fund launch comes as private equity investment in the consumer sector is seeing a significant upswing, with deal value increasing by 45.8% year over year to $81.4 billion in 2024. - The founders have collectively created over $5 billion in enterprise value and have also co-founded Petfolk, a fast-growing veterinary platform with 36 locations.
Key numbers
- Cutting Horse, a private equity firm, has launched its first fund, raising $75 million to invest in consumer products and services.
- Wystrach was the founder of the meal delivery service Freshly, which was acquired by Nestlé for $1.5 billion, with Protasewich being an early investor.
- Cutting Horse's new fund exceeded its initial target of $50 million, closing at its $75 million hard cap in less than a year.
- The fund will make minority-stake investments of $1–10 million in consumer product and service companies that generate between $1–20 million in revenue.
What happens next
- Cutting Horse's new fund exceeded its initial target of $50 million, closing at its $75 million hard cap in less than a year.
- The fund will make minority-stake investments of $1–10 million in consumer product and service companies that generate between $1–20 million in revenue.
- They aim for a concentrated portfolio, selectively partnering with a few founders each year.
Quick answers
What happened in New $75M Fund for Consumer Products?
Cutting Horse, a private equity firm, has launched its first fund, raising $75 million to invest in consumer products and services. The new fund signals continued investor interest and capital allocation toward the consumer sector.
Why does New $75M Fund for Consumer Products matter?
The firm was co-founded by Chris Protasewich and Michael Wystrach, who previously collaborated for over a decade. Wystrach was the founder of the meal delivery service Freshly, which was acquired by Nestlé for $1.5 billion, with Protasewich being an early investor. Cutting Horse's new fund exceeded its initial target of $50 million, closing at its $75 million hard cap in less than a year. This demonstrates strong investor confidence in their operator-led investment strategy. The fund will make minority-stake investments of $1–10 million in consumer product and service companies that generate between $1–20 million in revenue. The firm's investment philosophy is to act as an operating partner, providing hands-on strategic and operational support, not just capital. They aim for a concentrated portfolio, selectively partnering with a few founders each year. The name "Cutting Horse" is inspired by the animal known for its precision and focus, reflecting the firm's disciplined, partnership-driven approach to investing. Current and past portfolio companies include Promix Nutrition, Cassi, BetterWild, Feel Goods, SuperTeeth, and Butternut Box. This fund launch comes as private equity investment in the consumer sector is seeing a significant upswing, with deal value increasing by 45.8% year over year to $81.4 billion in 2024. The founders have collectively created over $5 billion in enterprise value and have also co-founded Petfolk, a fast-growing veterinary platform with 36 locations.
