Shore Capital Partners Raises Over $450 Million for Food & Beverage Fund III, Promotes Three to Partner
Shore Capital Partners (“Shore Capital” or “Shore”), a Chicago-based private equity firm known for its strategic focus on the lower middle market, has successfully closed its third dedicated food and beverage fund—Shore Capital Food & Beverage Partners Fund III (“F&B Fund III”)—with more than $450 million in capital commitments. This significant milestone brings Shore Capital’s total assets under management (AUM) to approximately $13 billion, reinforcing its position as a prominent and rapidly expanding force in the private equity space.
This latest fundraise signals continued investor confidence in Shore’s unique approach to sector-specific investing, particularly within the highly resilient and innovation-rich food and beverage industry. It also reflects the growing demand among limited partners (LPs) for managers who combine deep operational experience with disciplined investment strategies focused on value creation at the lower end of the middle market.
Promotions Mark Strategic Milestone
Coinciding with the fund close, Shore Capital also announced the promotion of three key executives—Tom Smithburg, Jeff Smart, and Jeff Smith—to Partner. All three professionals have played essential roles in the creation, expansion, and ongoing success of Shore’s food and beverage platform. Their leadership and operational contributions have helped scale Shore’s portfolio companies, drive organic and inorganic growth, and deepen relationships with founders and management teams.
“The successful close of our third food and beverage fund reflects both the strength of our team and the breadth of opportunity we continue to see in this sector,” said Justin Ishbia, Founder and Managing Partner at Shore Capital. “Food and beverage remains one of the most active and resilient segments of the lower middle market. With the right operational tools, strategic insight, and leadership talent, these businesses can achieve transformational growth.”
Commenting further on the promotions, Ishbia added, “We’re proud to recognize Tom, Jeff, and Jeff for their outstanding contributions. They’ve been instrumental in building the foundation of our food and beverage strategy, and their promotion to Partner is a testament to the impact they’ve made. As we move forward with Fund III, their expanded leadership will be vital to supporting our portfolio companies and identifying new high-potential investments.”
A Proven Strategy in a Dynamic Market
Shore Capital has built a highly specialized food and beverage investment platform that focuses on high-growth businesses operating in fragmented, underserved, or emerging segments of the market. The firm has invested in more than a dozen companies across categories such as specialty foods, bakery, beverage, foodservice distribution, packaging, and ingredient manufacturing.
Over the past year, Shore’s food and beverage portfolio has continued to gain momentum. Several of its companies have demonstrated exceptional growth and scalability. Notably, Whetstone Distribution and FirmaPak were recently recognized in Crain’s Chicago Business Fast 50, a list highlighting the fastest-growing companies in the region.
In May 2025, Shore announced the recapitalization of Sweetmore Bakeries through a special purpose vehicle (SPV), a move designed to support continued expansion and innovation in its product offerings. These achievements illustrate Shore’s capacity to transform founder-led or family-owned businesses into scalable platforms capable of driving long-term value creation.
“We’ve been intentional about investing in areas where we know we can unlock operational value,” said Richard Boos, Partner at Shore and leader of the firm’s food and beverage investment strategy. “With Fund III, we’re doubling down on subverticals like produce distribution, vending, and other emerging niches where fragmentation persists and operational sophistication is in high demand. Our approach has always been about partnering closely with founders, sharing operational best practices, and building companies that are positioned for lasting success.”
Investor Confidence and Strategic Alignment
F&B Fund III was significantly oversubscribed, drawing strong demand from a diversified group of new and returning institutional investors. Limited partners in the fund include university endowments, financial institutions, funds of funds, and family offices, many of whom have backed previous Shore funds.
In a strong show of alignment, Shore’s general partners and broader leadership team also made substantial personal commitments to the fund. This co-investment underscores the firm’s confidence in its strategy and deep commitment to shared success with its LPs.
“Shore’s disciplined investment process, combined with deep operational support, makes it a compelling partner for business owners and investors alike,” said a representative from one of the fund’s institutional LPs. “They’ve demonstrated time and again their ability to scale businesses through value-added partnerships, not just capital infusion.”
Supporting the Lower Middle Market
F&B Fund III will continue Shore’s targeted focus on lower middle market companies, specifically those generating between $5 million and $100 million in annual revenue. The fund will pursue investments in businesses across the food and beverage value chain, including manufacturing, processing, packaging, distribution, and adjacent services.
Once onboarded, portfolio companies gain access to Shore’s comprehensive operating toolkit. This includes assistance with strategic planning, executive recruitment, financial reporting, digital transformation, supply chain optimization, and M&A integration. These resources are deployed in close partnership with management teams to accelerate growth and improve long-term performance.
Shore also leverages a proprietary network of executives and advisors to help guide portfolio companies through key inflection points. This “entrepreneur-first” approach has earned Shore a reputation as a preferred partner for founders seeking more than just capital.
“Founders choose Shore not only because of our financial backing, but because we roll up our sleeves and work side-by-side to build something lasting,” said Smithburg. “Fund III gives us even more capacity to back great businesses with strong fundamentals and help them grow responsibly.”
Fund Leadership and Legal Counsel
F&B Fund III will be managed by a senior leadership team comprised of Justin Ishbia, Richard Boos, and newly promoted partners Tom Smithburg, Jeff Smart, and Jeff Smith. Their collective experience spans decades of investing, operating, and scaling companies within the food and beverage ecosystem.
Kirkland & Ellis LLP served as legal advisor to Shore Capital throughout the fundraising process. Notably, the firm did not engage a placement agent, underscoring its ability to raise substantial capital through established LP relationships and proven performance.
