Mercato Partners is doubling down on the restaurant industry.
The Salt Lake City-based private equity firm on Wednesday announced that it closed on Savory Fund II, a $100 million funding round targeted at emerging chain investments.
The round comes just one year after Mercato closed on its first Savory Fund, a $90 million investment vehicle that has already led to investments in concepts like The Crack Shack, Mo’Bettahs, R&R Barbeque, Swig and Via 313. Mercato says that its concepts are on pace to open 40 locations this year and another 70 in 2022.
Most of the investors from the initial fund, which includes institutional investors, family offices and financial and advisory firms, have made commitments in the second fund, Mercato said.
Andrew Smith and Greg Warnock manage the Savory Fund, which works to take brands from fewer than nine locations to 40 to 50.
“As one of the few firms operating in this industry niche, they understand our mission of partnering with leading entrepreneurs early in their business life cycles and accelerating their brand and operations nationally,” Smith said in a statement.
Last year, Savory was among the rare investment firms that actively put funds into restaurants at a time when investors were holding back at a time of considerable uncertainty. It remains among the most active investors in growth chains at the moment.
Smith himself has been arguing that the firm is putting itself into a strong position coming out of the pandemic as the economy and dining return to normal.
“We have developed a replicable playbook for success with five amazing companies, not only through the efficient use of capital but also through on-the-ground operational assistance,” Smith said in a statement. “As the pandemic fades into memory, Savory is poised to take advantage of re-openings across the country and the desire to eat outside the home and try new concepts.”
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