Mauzé: VMG avoided mega-fund creep to remain focused on lower-middle market
Mike Mauze · Mike Mauzé - Escape Velocity for CPG Brands at VMG Partners (First Meeting, EP.16) · Mar 2, 2020 · at 14:59
Mike Mauzé, co-founder of consumer private equity firm VMG Partners, explains their strategic decision to remain disciplined in the lower-middle market instead of scaling fund sizes.
0:00 / 0:29exact quote · 29.6s
720p mp4 · rendered on demand · StarZero watermark
“We also believed that the lower middle market have been a very attractive place for people to invest ever since I've gotten out of college, but many firms decided to use that as a launching pad to create much larger funds, and we thought that we love this. This is our passion. What if we were to invest in this space, hopefully learn From this space and get better at being a value add partner to our portfolio companies, stay in this space, and continue to invest and really work with entrepreneurs to help them meet their goals.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Mike Mauze
Mauzé: Big CPG cannot nurture small brands and must acquire them
“They're not very good at nurturing smaller entrepreneurial brands and really see the acquisition of these brands. As a real opportunity for them to generate top-line growth.”
Mauzé: Cannabis and THC will take market share from alcohol
“I think CBD in terms of THC is a real unique product and one that's going to take away from the alcohol and spirits.”
Mauzé: There is no such thing as proprietary sourcing today
“I think in today's world, there's really no such thing as proprietary sourcing.”
Mauzé: Bankers Solve Assigned Problems; PE Principals Choose Which to Solve
“Moving from banking to private equity is a big challenge, because in banking, you're really kind of focused on solving problems. Whatever problem is thrown your way in terms of trying to meet this financing need or trying to put these two companies together. A…”
Mauzé: Big CPG evaluates backwards while startup entrepreneurs look forward
“As we say, big CPG is always looking backwards. They're looking at categories and how they have performed. These entrepreneurs are really looking forward, and I think they're discovering these new niches in these very large categories that can be large over ti…”
Mauzé: Consumers Adopt Healthier Diets Incrementally Rather Than Abruptly
“When we look at this kind of modern consumer and where they're going, they're not making a huge leap from Highly processed food to raw vegetable. They're on a journey, and I think the entrepreneurs are meeting the needs of that consumer while they're on that j…”