Savory Fund has announced the final close of Savory Fund III at $201.5 million, surpassing its original $200 million target, according to a report published October 13. The private equity firm, which supports restaurant brands such as Swig and Mo’ Bettahs, has already deployed 35 percent of the fund's capital.
According to Andrew K. Smith, co-founder and Managing Director of Savory Fund, the fund drew from a mix of returning and new limited partners, including leading financial institutions. Smith noted that the majority of the limited partners in the third fund had previously invested in Fund I or II. The firm has previously helped scale 13 restaurant brands across the country, including concepts ranging from Nashville-style hot chicken to dirty soda.
The fund utilizes a strategy of partnering with founder-led, profitable, emerging restaurant concepts and pairing them with an operating platform led by CEO Clay Dover. Savory Fund III is expected to ultimately include between eight and nine portfolio companies across the casual dining, fast-casual, and quick-service segments. Four investments are already in place: South Block, a Washington, D.C. area-based acai and smoothie brand; Bonrue Bakery, a European-style patisserie; Hawkers Asian Street Food; and Zao Asian Grill, which recently reported nearly 20 percent same-store sales growth.
Since its founding in 2018, Savory has grown to a portfolio of 13 restaurant brands spanning 400+ restaurants across 27 states. This includes the growth of Swig, which grew from 17 to 46 locations before a majority stake was sold to The Larry H. Miller Company in 2022, and Mo’ Bettahs, which grew from six to 56 locations before a majority stake was sold to Blue Marlin Partners and Trive Capital in 2024. Savory remains a minority owner of both brands.
Shauna K. Smith, co-founder and Managing Director of Savory Fund, stated that the fund provides the runway to bring expertise to more founders ready for their next chapter. The firm focuses on operators who have built playbooks and know how to scale brands without losing their original identity.
