Savory Fund, a Salt Lake City private-equity firm that owns restaurant chains such as Hawkers Asian Street Food and Bonrue Bakery, has closed its third fund after raising $201.5 million, according to a report published October 16. The fundraising round was oversubscribed despite a challenging investment environment and a downturn in restaurant industry valuations since 2021.
The fundraising process was described by cofounder and managing director Andrew Smith as the hardest of his career. Smith noted that investors were motivated to participate after seeing the firm's recent acquisitions, stating that the assets are incredible and are not shutting down. The firm recently acquired South Block, Bonrue Bakery, Hawkers Asian Street Food, and Zao Asian Café to help secure the fund's completion.
Savory Fund employs a unique model by investing in innovative growth chains while retaining original founders. Led by CEO Clay Dover, the firm focuses on scalable growth and minimizing debt while emphasizing cashflow. This approach aims to preserve the fanaticism that drove the brands to success. More than a third of the $201.5 million fund has already been deployed, and the firm is currently targeting four to five additional deals.
The successful fundraise comes during a period of slowing global middle market investment fundraising, which S&P Global reported was down 7% in the first half of the year. Additionally, capital raised by emerging fund managers—those on their first three fundraises—has diminished from 18.6% a decade ago to 11.6%, according to Nuveen. Savory Fund's history began nearly two decades ago when cofounders Andrew and Shauna Smith opened a bakery in Lehi, Utah, during the Great Recession.
The firm's portfolio includes brands such as Via 313 Pizzeria, Swig, and Mo’Bettahs. Savory Fund aims to use its experience to support restaurant teams and prevent them from making the same mistakes the founders encountered during their time operating physical restaurant locations.
