San Francisco Equity Partners’ Second Fund Closes At $100M

San Francisco Equity Partners closed a $100 million fund that will be focused on consumer products and services investments.

The private equity firm said its second fund will target equity investments of $5 million to $20 million and take on larger transactions with partners. The firm favors buyouts and significant minority stakes.

The new fund is slightly larger than San Francisco Equity Partner’s first $85 million fund, which it raised in 2005.

Founding Partner Scott Potter (pictured) said the first fund had a similar investment strategy and the consistency aided fundraising. The firm reports that the fund’s current portfolio of companies generated average annual revenue growth of 45% in 2010.

The portfolio includes Zoom Eyeworks Inc., the Berkeley reading glasses company that San Francisco Equity Partners acquired in September. Also on the list are green home care products maker Method Home Products; Yes To, a maker of natural skin and hair products; fine crafts retailer The Guild; and luxury travel site Luxury Link.

Potter says the consumer market remains an attractive place for investing, particularly the market place for natural and green products, healthy lifestyle products, pets products and sites that market directly to consumers.

He said the firm looks for businesses with annual revenue between $10 million and $50 million and products with proven consumer adoption.

San Francisco Equity Partners’ new fund took six months to raise and closed at the end of December.