Like most businesses in the U.S. hospitality industry, Spirit Cruises experienced the fallout from September 11, 2001. A pioneer in the dinner cruise segment, Spirit has ships in major cities, including New York City and Washington, D.C.

The company had firmly regained its footing by 2005. However, its parent company, Sodexho USA, no longer considered dinner cruises part of its long-term strategy. An arm of French-based Sodexho Alliance, Sodexho’s core offerings focus on food- and facilities-management services.

“We were kind of an odd fit,” says Lorna Donatone, president of Spirit Cruises, which was founded in 1978. “We said, ‘Let’s go out and see what the market is. We have a lot to offer.’”

Apparently, ICV Capital Partners agreed. The New York private investment firm in 2006 had acquired Spirit’s competitors, Premier Yachts and Seadog Ventures.

Spirit, a $55 million business, was a natural addition, and in August 2006, ICV’s newly created company, Entertainment Cruises Inc., closed the transaction with Sodexho.

With locations in six markets, including New York, Philadelphia, Chicago, and Boston, Entertainment Cruises now possesses a healthy 25-percent market share, with annual revenues of about $85 million.

But that is not what is so groundbreaking about the deal. The transaction represents a changing tide in the foodservice industry. ICV Capital Partners is a minority-owned firm, and with one fell swoop, the deal effectively boosted diversity in a food-industry sector.

ICV, which has more than $440 million in committed capital from institutional investors, is becoming a major player in the hospitality and entertainment industry. In 2006, ICV’s sister fund, American Securities Capital Partners, provided growth capital to Potbelly Sandwich Works. In 1999, ASCP acquired El Pollo Loco.

Meanwhile, ICV in 2003 invested in Chung’s Foods, which provides Asian appetizers and entrees and in 2001 invested in Sterling Foods, a leader in bakery products.

The firm plans on making additional investments in the food industry that could include large transactions in the quick-serve market.

“The quick-service world is growing,” says Tarrus Richardson, managing director of ICV. “They need to have larger franchises in their network, and the same is true on the supplier side.”

And when those large deals include a minority business enterprise, MBE for short, quick-service restaurants can improve their diversity initiatives.