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.
- 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.
