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The restaurant business is tough. Maybe that's why there are few if any private equity firms that strictly focus on the acquisition of restaurants -- until now. Private equity veteran Harold Rosser launched a new firm called Rosser Capital Partners that will do just that and primarily focus on middle-market investments in the restaurant sector.
Overall, the landscape for restaurant middle-market deals has shown some signs of pickup in the early part of 2010 following a quiet period during the economic malaise of 2007 through 2009. Just last year, some closely watched midmarket restaurant deals involved PE firms, including Papa Murphy's International Inc. Charlesbank Capital Partners LLC sold the chain for $180 million to Lee Equity Partners. Meanwhile, Mill Road Capital LP acquired Rubios Restaurant Inc. for $91 million in May, and Apollo Management LP acquired CKE Resturants Inc. for $1 billion in July.
But with signs showing that the economy may have turned the corner and valuations for restaurants expected to rise, perhaps Rosser is starting his fund at the right time. "While it was a difficult decision to make, I am very excited about this new path I have chosen. ... My goal is to leverage our industry experience and previous successes to build strong companies," said Rosser, who left Bruckman Rosser Sherril & Co., an investment firm he co-founded in 1995. - Gerald Magpily
