US-based hospitality group Union Square Hospitality Group (USHG) closed an oversubscribed investment fund called Enlightened Hospitality Investments (EHI) yesterday with more than $200m in capital.
The growth-stage equity vehicle included commitments from USHG and third-party investors, though the identities of those backers and the specific sums they provided were not disclosed.
USHG operates a range of restaurants, cafés and bars, such as burger chain Shake Shack, together with a catering and events business and a consultancy arm.
EHI will primarily target businesses in the casual dining and hospitality technology spaces, investing between $10m and $20m in each portfolio company.
UHSG may also invest in other businesses it considers as having potential for scale and proven market leadership. It will particularly seek out businesses that prioritise employee satisfaction to drive consumer happiness and generate sustainable returns.
The fund will be headed by Mark Leavitt, USHG’s chief investment officer, who will be in charge of a dedicated team to identify opportunities and manage the portfolio.
Leavitt said: “We are thrilled to have raised our first growth equity fund which is uniquely positioned to provide resources, relationships and visibility to drive growth for our investments and provide benefit to our portfolio partners.
“The fund will invest in companies that value our participation, the overarching culture of USHG and will benefit from the wide network of relationships and resources that USHG has cultivated over the years.
“We look forward to making additional strategic investments in companies that share our mindset and value our participation in assisting in their growth.”
EHI has already made its first investments in the US, providing capital to coffee shop chain and wholesale business Joe Coffee, ice cream parlour operator Salt & Straw Ice Cream and restaurant management software developer Resy Network.