Restaurant investment firm Multipli Capital has formed a joint venture with Port Street Ventures to invest in Starfish Hospitality Group as the firm plans to expand its portfolio beyond Laguna Beach and Newport Beach.
The joint venture investment fund, dubbed PSV Multipli Investors LLC, is currently backing the entry of Newport Beach’s Starfish into Arizona. The first location in Scottsdale opened to the public in May, spanning 5,200 square feet with 191 seats.
Starfish founders Gretchen and Archie McConnell approached Multipli founder Ned Algeo, a former executive at Xperience Restaurant Group, in 2024. At first, Algeo worked in an advisory role for the McConnells. He decided to help with financing when the Scottsdale opportunity came up last year.
Ric Gordon, an Arizona-based restaurateur, had approached the McConnells about opening a location in Scottsdale, as a fan and frequent visitor to Starfish while in Orange County. The menu features fresh seafood, sushi rolls, curries, noodles, rice and wok-fired meats.
When the time came to lease and start building the new space, a $2 million project, Multipli and Port Street Managing Partners Nick Orzano and Brent Leffel started the fund and invested in Starfish Hospitality for a minority stake.
“We joined forces and spread this opportunity out amongst our networks,” Algeo said. “We were oversubscribed in less than 24 hours.”
In addition to Scottsdale, Starfish is looking to open one to two more locations in Orange County in the next 12 to 18 months, according to Algeo. The operators are interested in South OC, such as Rancho Mission Viejo, and Central OC, like Tustin or Anaheim Hills.
Last year, the founders took over a small dining space at the Sawdust Art Festival site in Laguna Beach and opened a fast-casual concept called The Cove by Starfish featuring a fan-favorite menu.
“They are wonderful people and excellent operators, and we’re looking to do big things together,” Algeo said.
Multipli Portfolio
In 2024, Algeo left his role as chief financial officer at Xperience, the parent company of Sol Mexican Cocina and El Torito, to launch Multipli, which invests in select restaurant concepts and hospitality brands.
He has since started advising clients such as Zov’s Bistro, Mark Wahlberg’s Flecha Cantina restaurants and Heartache BBQ based in Fort Worth.
Multipli’s first investment was backing BizBox Restaurant Group in a franchise development agreement with Irvine-based Mountain Mike’s Pizza in late 2024. The plan is to enter the Florida market for the first time and open 10 stores over the next five years. BizBox is still looking for its first location.
Algeo has two other joint ventures focused on expansion in Florida, including a café concept, 3Natives and a Wahlburgers franchisee. The latter venture has opened Wahlburgers’ foodservice operations at five different Home Depot stores.
