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ISSUE
#34
NOVEMBER 20, 2020
A Publication of WWD
THE
MONEY
I$$UE Money images by Adobe
From forecasting the future of M&A activity to an A-Z breakdown of beauty’s key investors,
WWD Beauty Inc takes an in-depth look at the financial picture heading into 2021.
PLUS: Why diversity matters in investing and how some key players celebrated their first big deal.
THE BUZZ 2
NOVEMBER 20, 2020
Beauty Bulletin
Carolina Herrera’s makeup line. The Ipsy to Acquire Boxycharm
Charlotte Tilbury business also has Ipsy bought a major slice of the
an expanding and successful skin- beauty-box competition when it
care component, and was growing agreed to acquire Boxycharm in
quickly — even during the COVID-19 October. The combined businesses
pandemic. Multiple strategic buyers, are expected to form a powerhouse
including the Estée Lauder Cos., were with more than $1 billion in combined
said to have looked at the business. sales in 2020 and enough subscriber
data to very specifically tailor brand
Yatsen Files for IPO and product launches. Because of
In late October, Guangzhou Yatsen the deal, Ipsy also restructured the
E-commerce Co., the parent business, forming parent company
company of skin-care brands Beauty For All Industries, which
Perfect Diary, Little Ondine and also includes incubator Madeby
Abby’s Choice, filed for an initial Collective, and will soon include
public offering in the U.S. The deal a new brand called Refreshments
would allow it to raise up to $100 launching later this year with
Tk caption million, and make it the first Chinese “clean essentials,” like face wipes
beauty company ever listed on and hand cream.
the New York Stock Exchange. The
business posted 3.03 billion renminbi KKW Cosmetics Sells 20
in net income for 2019, about $457 Percent Stake to Coty
million. Yatsen plans to use the Kim Kardashian West sold a minority
money for operations and potential position in her cosmetics brand, KKW
investments or acquisitions. Cosmetics, to Coty, following in the
footsteps of younger sister Kylie
L’Oréal Purchases Mugler & Jenner, who had previously inked a
The 10 Most Major Beauty
Azzaro Licenses from Clarins majority deal with Coty. For KKW, the
L’Oréal signed the deal to acquire licensing deal puts Coty in charge of
developing skin care — the biggest
Deals of 2020
the Mugler and Azzaro fragrance
licenses from the Clarins Group in focus right now — as well as personal
2019, but it closed earlier this year. care, hair care and nail care. But for
¬ Beauty M&A activity may have The Hut Group Files for IPO The brands generated about 340 Coty, the deal is pivotal to broader
slowed down slightly in 2020, but The Hut Group, owner of Illamasqua, million euros in sales in 2018. The plans to accelerate growth in skin
there were still many major deals Eyeko and e-commerce retailer acquisition gives L’Oréal further care, which it plans to do through
to be had. The year was ripe with Lookfantastic, went public in access to prestige designer KKW and through Kylie Skin.
public offering activity from the September with a $7 billion initial fragrances, but also allowed Clarins
parent company of Perfect Diary, public offering. The business has to divest from fragrances entirely in Nestlé Health Sciences
The Hut Group and VC-backed Hims, been growing, and saw sales rise order to focus on skin care. Mugler is Acquires Majority of
but also saw a billion-dollar makeup almost 25 percent in 2019, to 1.1 known for Angel, an iconic gourmand Vital Proteins
acquisition with the Puig-Charlotte billion pounds. “We anticipate scent, and Alien, a bestseller, while Nestlé Health Sciences agreed to
Tilbury deal, as well as other substantial future growth and Azzaro’s portfolio includes classics buy a majority stake in Vital Proteins,
meaningful transactions. Here are expansion across the beauty like Azzaro Pour Homme and an ingestible collagen business
some of the biggest beauty industry, which will continue to Chrome, and Wanted. that makes powders, beverages
M&A deals of 2020. benefit our brands and our web and foods. The deal underscores
sites. We expect subscription beauty Hims Goes Public via burgeoning interest in the wellness
KKR Buys Majority of Coty boxes will continue to drive customer SPAC Merger category, and in beauty-wellness
Professional acquisition and loyalty, while our In early October, venture capital- products. The deal is meant to help
Coty Inc. inked a deal with major own prestige beauty brand portfolio backed Hims said it inked a merger provide Vital Proteins, which will
private equity firm KKR to sell a will benefit from premiumization agreement with special purpose continue to operate as a stand-alone
majority stake in its professional trends and rapid expansion through acquisition vehicle Oaktree business, with resources to further
division, which includes Wella, OPI increased digital penetration and Acquisition Corp. that values the innovate and scale operations.
and Clairol. After some speculation internalization,” said chief executive company at $1.6 billion and would
that the deal had hit the rocks due officer Matthew Moulding. take it public. Hims, which also L'Oréal Acquires Thayers
Collage by Alex Bandoni; Kim Kardashian by Ahmed Klink
to the coronavirus, Coty and KKR operates a business segment L'Oréal upped its exposure to the
signed a joint venture agreement Puig Acquires Majority Stake in aimed at women called Hers, runs natural beauty space with the
that gives KKR control of the Charlotte Tilbury a telehealth operation that sells acquisition of Thayers Natural
division with 60 percent ownership. Charlotte Tilbury became the latest erectile dysfunction medication and Remedies, a brand best known for its
The move is meant to simplify founder to score a billion-dollar birth control, as well as hair-loss witch hazel and toners. The brand will
the business, and allow for Coty beauty deal when Puig agreed to prevention and skin-care products live in L'Oréal's Consumer Products
leadership to fix the ailing consumer buy a majority stake in her business over the Internet. Founder Andrew Division, which also contains L'Oréal
division (home of Covergirl) and for what sources said was about 1.2 Dudum said the deal will allow the Paris, Garnier and NYX. Alexis
accelerate the luxury segment, billion pounds. BDT Capital Partners business to work toward becoming Perakis-Valat, president of that
especially via skin care. In November, also bought a stake in the business. “the front door to the health-care segment, said the brand was part
Coty said that it expected the For fragrance-focused Puig, the system, serving as the first stop for of L'Oréal's strategy to develop its
deal to close before the end of the acquisition furthers exposure to the people’s health and wellness needs skin-care business globally, and that
calendar year, and that its remaining color cosmetics category, which around hundreds of conditions” and Thayers complemented L'Oréal's
40 percent stake in the operation is the company has played in with that the brands would move into new North American skin-care brand
valued at around $1.3 billion. Christian Louboutin Beauty and categories going forward. portfolio. —Allison Collins
P R E S E N T E D B Y :
BEAUTY BEGINS
WITH TRUTH
For three decades, Paula’s Choice has delivered research-based
skin-care solutions that consumers embrace.
T
he beauty industry can be how well we’re meeting their needs, even as
overwhelming with conflicting they might change.
research, intimidating
ingredients and thousands of WWD Studios: What is the company’s
products to choose from. approach and philosophy in regard to
But, for customers of Paula’s inclusivity and sharing knowledge?
Choice, the experience is distinctly different. E.K.: The inclusiveness of our brand is
Paula’s Choice has been dedicated to something we have prioritized by cultivat-
sharing knowledge about skin and skin care ing and supporting a diverse community
since it was founded by best-selling author and making sure we offer an experience
and customer advocate Paula Begoun 25 years where everyone feels part of it. This trans-
ago. The ethos of Paula’s Choice is one based lates directly to the way we approach our
on truth, not hype, and one that is firmly influencer and social initiatives. One of
anchored to science and research. our initiatives around this is On the Rise,
By providing consumers with science- which is a program that supports and am-
backed education and products, Paula’s plifies the voices of Black content creators
Choice has grown a loyal following, and its in the micro-influencer community.
safe, effective formulas that deliver results We’ve always been about “accessibility,
continue to be a go-to for new and existing not exclusivity.” One of the first impres-
customers. sions users gain when they visit the Paula’s
Here, Erika Kussmann, chief marketing Choice web site is how much our online
officer of Paula’s Choice, discusses the brand’s presence is really an open book to the
positioning, how the company leverages science behind our beauty. The research
extensive R&D, the role of consumer insights is laid out in full candor on our product
in product development and how skincare “is and personalization literally has no boundar- of just relying on slick marketing campaigns detail pages. Under every product descrip-
not one-size-fits-all.” ies. It has allowed us to scale tremendously, and focus groups, Paula’s Choice sources a tion, users can find numerous customer
not only in the United States but also around great deal of knowledge and product guid- reviews in full.
WWD Studios: How have consumers the world – over 50 percent of our business ance direct-to-consumer. We truly listen to
and their skincare needs changed in the is in Europe and Asia. their concerns and use their feedback to for- WWD Studios: What role does content
past decade? mulate future products. We look closely at play in this approach?
Erika Kussmann: What is exciting now is WWD Studios: What informs your the articles they are reading on our site, what E.K.: As a direct-to-consumer brand,
the growing self-empowerment and interest product development strategy? products they’re obsessing over, what they’re Paula’s Choice launched online so that we
in skincare information across so many more E.K.: In addition to being driven by the sci- buying, re-buying and not buying. are not just a sales portal but also a central
customers than ever before. People want ence and research, our direct relationships source of knowledge for everything we
facts when it comes to the health and beauty with our customers mean they play a vital WWD Studios: How do you leverage the create and all of the independent research
of their skin. We see a growing base of role in our product development. Instead brand’s R&D efforts to deliver the right that our teams perform. Our web site
customers who are savvy, science-obsessed, skincare solutions? lays the foundation for our research and
and intimately familiar with the ingredients E.K.: We follow the science — not what’s expertise, and we have expanded our reach
that they use. In fact, people new to Paula’s popular. We use extensive research to sup- with social channels, e-mail and events that
Choice make up over 70 percent of our port and verify our formulas. And we use help us cultivate relationships and share
Expert Advice content traffic. Searches for hundreds of independent studies, safety data our expertise in all those places where
ingredient information on our site are up and extensive consumer testing to develop skincare and self-care are at the center of
more than two times year-over-year. and prove that our products are truly bene- the conversation. Our research, products
An example is our Boosters collection has ficial for skin. Every product is tested on real and education are for everyone, and so is
really taken off: These are hero ingredients people by an independent laboratory for irri- the content we create. We make sure that
supported by the research at proven effica- tancy and safety. is reflected in our influencer partnerships
cious levels. Our roots as a brand are educating cus- and the way in which we communicate
tomers about what to use and not to use on with our customers across multiple digital
WWD Studios: How does Paula’s Choice their skin, and this extends to our rigorous channels.
meet these demands? standards on allowable ingredients in our
E.K.: The cornerstone of our brand is to em- skincare. In this way, we’ve led the way for WWD Studios: What is the brand’s
power people with the knowledge they need decades in developing clean formulations. approach to influencers?
to feel confident in their skincare choices E.K.: Having a deeply knowledgeable cus-
through our skincare and ingredient content WWD Studios: How has Paula’s tomer base creates a flywheel effect, in which
across our channels. Choice adapted its strategy to meet your most passionate customers share this
And as a result, nearly 80 percent of evolving consumer demands due to the knowledge with their friends, family mem-
Paula’s Choice customers report “Trust in
Paula’s Choice’s Science & Research” as the
This trust pandemic?
E.K.: We know that we must remain nimble
bers and peers around the world.
Fans have found Paula’s Choice on social
number-one reason they choose our prod- is what has and responsive to our customers’ needs, es- who are attracted by our extensive skincare
ucts. This trust is what has propelled us to
become one of the largest and fastest-grow- propelled us to pecially during these uncertain, changing
times. We apply an agile way of working
and ingredient content. Over time, this
community has become this strong legion
ing digital skincare brands in the world.
At the core, we are a consumer-centric,
become one of across the entire organization, from market-
ing to content to creative.
of advocates for our brand that is empow-
ered by knowledge.
personalized skincare brand. Our focus is on
helping people make individual choices for
the largest and The key is keeping our team united and
laser-focused on identifying those top-pri-
For us, our influencers are a treasured
part of the brand and that relationship
themselves with best-in-class formulations fastest-growing ority projects that will ensure we are deliv- and that trust must run deep. This is just
that deliver results regardless of their age,
gender, skin color or skin type. digital skincare ering maximum value to the customer. This
approach enables us to respond quickly to
as much about the internal process — how
we prioritize this work in-house and how
Wherever the customer is in their skin-
care journey, Paula’s Choice is there with the
brands in changing market and customer needs.
We’ve been direct to consumer from the
we maintain those relationships — as it
is about the flashy social media posts. It’s
content to help them with a more informed the world.” start, and our AI learning and full-funnel dig- about taking the time to find the people
solution. And on our site and digital chan- ital marketing strategies help us reach these who are true fans, who are true advocates,
nels, we have the capabilities to personalize Erika Kussmann customers at all of the relevant digital touch- and who have an intense focus on the
based on a customer’s needs for the most rel- Paula’s Choice points where they are. With our direct rela- knowledge and the science, and making
evant experience. tionships, and our data capabilities, we can sure it is a two-way channel, where we are
This mission of consumer empowerment measure how customers are responding and listening deeply to their ideas and needs.
NEWS FEED 4
NOVEMBER 20, 2020
Beauty Retailers Showcase
and so we’re seeing, certainly like
everyone else, challenges on the
color cosmetics business. People are
Sustainability, Diversity
much more focused on health care,
and so we’re seeing strong growth
in health and healthy skin. And
then we have what’s happening in
“Wellness has been incorporated into everything,” says The Detox Market’s the social environment, with much
director of brand partnerships, Elena Severin. BY RYMA CHIKHOUNE more of a focus on sustainability and
multicultural [initiatives].”
According to the Global Wellness Walmart will focus on brands
Summit, along with mental wellness, for and created by people of color,
reproductive health is a rising trend Balbale said, while working to bring
in the category this year. transparency into stores: “How do
“Our customers have been asking we make it simple for people to
for them,” said Michelle Connelly, understand the ingredients and make
vice president of merchandising and sense of what is oftentimes a long
planning at Credo Clean Beauty, of ingredient list on the back of the
pregnancy products. “One of our bottle? We’re in the process now of
values is to be welcoming to all…for trying to understand how we simplify
clean beauty to be approachable, to the consumer’s ability to distill what
bring that message that clean beauty she is reading in a way that makes
is for everyone.” sense and helps catalogue what she’s
This year’s Black Lives Matter reading into buckets that she cares
movement has also had influence on about, whether it be impact on her
the industry, as retailers pledge to own health and body, impact on the
make inclusivity and diversity part of environment.”
their ethos. In color cosmetics, retailers are either
“It’s definitely a focus for us to putting attention on vegan products or
put a concentrated effort behind those backed by known personalities.
Sephora
diversity, not just in our brand Walmart offers The Lip Bar, a vegan,
founders but also in all of our cruelty-free line, as well as Luv Betsey,
WELLNESS IS TOP-OF-MIND packaged blend of superfoods in marketing,” continued Connelly. a line by Betsey Johnson.
for consumers during the ongoing capsule form created by Asa Siegel. Along with skin care, hair is a Celebrity brands are indeed
coronavirus pandemic, and now, it's “It’s all about protecting the focus for retailers, too. everywhere: Ulta Beauty will soon
top-of-mind for retailers, too. microbiome in the skin and Credo recently added Nuele to its exclusively launch Keys Soulcare next
The sector has been growing, last addressing the stress levels in the hair category, a brand founded by month, a beauty brand by Alicia Keys
valued at $4.5 trillion in 2018 by the skin,” said Severin of Biophile, a two women of color, Anne Cheatham in collaboration with E.l.f. Cosmetics;
Global Wellness Institute. According partly Black-owned brand. and Dr. Christine Martey-Ochola. CVS now sells Flower Beauty by Drew
to the nonprofit organization — While turning to self-care amid “It’s a product that works for every Barrymore, and Sephora recently and
which works to “empower” wellness rising health and environmental hair type,” said Connelly. “It’s done exclusively introduced Rare Beauty by
through education and research on concerns, beauty shoppers are very well for us so far.” Selena Gomez, One/Size by influencer
preventative health — the category specifically seeking out products that At Violet Grey, Black-owned Patrick Starrr and Makeup by Mario,
grew nearly twice as fast as global are nontoxic, cruelty-free and have hair company Sunday II Sunday — founded by Mario Dedivanovic (Kim
economic growth between 2015 an element of sustainability. Retailers founded by Keenan Beasley — was Kardashian's famed makeup artist).
and 2017, based on data from the — from niche businesses to mass introduced last month. Each brand is inclusive, not just in
International Monetary Fund. And market chains — have taken notice. “[Sunday II Sunday's] products shading but in price range, too, said
the “personal care, beauty and “Nine out of 10 beauty consumers are all focused on scalp care,” said Alison Hahn, senior vice president of
antiaging” division is the largest, are interested in buying clean over the Maureen Choi, Violet Grey’s executive merchandising in color at Sephora.
worth nearly $1.1 billion. next 12 months,” said Monica Arnaudo, director of content and curation. “Product differentiation is one of
“Wellness has been incorporated chief merchandising officer at Ulta Violet Grey, a highly curated luxury Sephora's main pillars.…There's a
into everything,” said The Detox Beauty, according to in-house research. beauty retailer, has committed 15 lot of newness to come in 2021 with
Market’s director of brand “And 80 percent of consumers expect percent of its shelf space to Black- these brands.”
partnerships, Elena Severin. businesses to have a positive impact on owned brands, she added. In skin care, Sephora launched a
The spotlight on wellness has been society and the environment.” For Walmart, while concentrating line by celebrity aesthetician Shani
accentuated this year, due to the The latest brands to enter Ulta on indie and affordable beauty, Darden, and in hair, the latest
impact of the coronavirus pandemic, Beauty this fall are nontoxic, vegan most recent additions include hair offering is Black-owned Bread Beauty
she continued. Consumers are and cruelty-free: Pirette, a beach- accessories and tools. One brand by Maeva Heim (Sephora, too, has
looking to reduce tension and anxiety. inspired fragrance; a hair-care and is a partnership with Conair and made the 15 percent pledge).
“We’ve seen internal wellness body-care line by Griffin Coon, influencer Sazan Hendrix, while the Looking into next year, a focus
equaling less stress on the skin and and Melanin Haircare, a Black- other is an exclusive launch with on health and supplying nontoxic
outward health as well, but this year owned hair company cofounded hairstylist Kim Kimble, known for goods is a shared priority for retailers,
really took it to a new level,” said by YouTuber Whitney White. And working with Beyoncé. including CVS. The mass retailer will
Severin. “When you look at [2020 in partnership with clean retailer “Traditionally in moments of soon introduce a tool into stores, the
launches] with your hindsight glasses Credo, Ulta Beauty launched a economic uncertainty, we see SkinSafe app developed by Mayo Clinic,
on, you can see they all have a curated selection of brands that are consumers reverting back to more that will allow consumers to search and
common thread and that’s wellness.” typically found there. established brands. They try to find better understand product ingredients.
The Detox Market, which Inside Credo's own stores, the focus products that have known value for Along with showcasing Flower Beauty,
specializes in clean beauty, recently has been on expanding its “mom and them…and we see a rise in beauty,” CVS has expanded Pop-arazzi, a vegan,
added Biophile and Stamba to its baby” category, launched this year said Musab Balbale, vice president nail polish and cosmetics line that
roster. The first is a skin-care brand by to offer nontoxic and sustainably and general manager for Walmart meets CVS' standards of clean.
Alison Cutlan and Grace Fooden that sourced goods for infants and mothers U.S. Beauty. “We talk about the “We are making sure that we are
uses probiotic bacteria, botanicals and to be. The newest brands are Nessa lipstick effect in beauty. All of that is mindful of ingredients,” said Andrea
fungi, while the latter is a certified and Hatch Mama, which provide skin- now being influenced by COVID-19. Harrison, senior director of DMM at
organic, sustainably sourced and care products for pregnancy. Consumers aren’t going out as much, CVS Health. “Our customers are asking.”
C O LO R C O S M E T I C S • S K I N CA R E • H A I R CA R E
T H E T E A M B E H I N D YO U R T E A M S
S I N C E 1 975.
P R O U D LY M A D E I N N E W YO R K C I T Y.
manaproducts.com
WEEKLY ROUNDUP 6
NOVEMBER 20, 2020
The Latest From WWD Fashion.Finance.Media.Retail.
Blacktag founders Ousman Sahko
and Akin Adebowale Shopify Partners With AliPay
¬ Retail platform Shopify Alibaba’s most recent
and digital wallet provider Singles' Day shopping
Alipay have joined in a event netted massive
partnership revealed online sales, garnering
Tuesday that allows the nearly $74.1 billion in gross
former’s U.S. merchants merchandise volume
to accept payments from during the multiday
customers based in China event and channeling
and other Asian markets. $449 million in sales to
With the Alipay payment Italian brands.
gateway, Shopify merchants Alipay serves more than
are positioned to lean into one billion annual active
ONLINE major shopping holidays
such as the Lunar New Year
users in China, and its
roadmap includes extending
LUXURY in February and the next 11.11 that reach to hundreds of
MARKET Global Festival, aka Singles' millions more across Asia.
FACES SLOW Day, in November 2021. — Adriana Lee
RECOVERY Shopify and Alipay have partnered on a new
payments gateway for U.S.-based merchants
serving Asian consumers.
¬ ForwardPMX’s latest
Blacktag Raises $3.75M in report analyzes the
current and future
Seed Funding state of the global
¬ Blacktag, a Black-owned and consumed. The platform online luxury sector,
and operated global media leverages components from which is poised to
and entertainment platform, social media platforms like see a decline in sales
revealed a $3.75 million seed user-generated content and that could reach
round. Connect Ventures, a profiles for creators including 45 percent and is
new investment partnership artists, influencers, directors, forecast to not fully
between Creative Artists musicians, actors, chefs and recover until 2023.
Beiersdorf Launches
Agency and New Enterprise more to connect directly The report
Associates, led the round. with brands and audiences
describes the luxury
Blacktag announced
partnerships with actress
that can subscribe to these
creatives’ content.
market as a resilient
industry, with brands
Skin Care in South Korea
Issa Rae and entertainer “Black economic power ¬ Beiersdorf AG has just The range includes the
Common, who will release should equate Black forging ahead despite
headwinds. There launched Chaul, its first Early Ritual Water Essence,
original content. creatives’ power,” said Akin brand developed specifically Early Ritual Ampoule and
Blacktag’s objective is to Adebowale and Ousman are opportunities
for the Asian market. Early Ritual Cream, each
modernize how content by Sahko, cofounders of in China, where
The three-unit, premium billed to be antiaging and
Black creatives is created Blacktag. — Obi Anyanwu consumers there are giving an even complexion.
face-care line has products
expected to generate formulated with fermented Beiersdorf said on
half of all luxury
Target Tracks Growth
tea. It was introduced Wednesday if the brand
goods purchases in South Korea a few is successful in South
Online and In-store
in the world in the weeks ago. The launch Korea, it will be launched
next five years. was spearheaded by the incrementally in Asia, with a
line revenues, and logging The report Nivea Accelerator (or NX focus on China, the largest
more than $1 billion in profits. highlighted brands Accelerator), Beiersdorf’s country market in the region.
Photograph by aanbetta - stock.adobe.com; Target by AP Images
Although digital comparable with high site Seoul-based innovation hub. — Jennifer Weil
sales grew 155 percent during traffic and social
the quarter, year-over-year, media engagement.
comparable traffic grew about ForwardPMX said
4.5 percent, with more than 95 in the U.S., overall
percent of the company’s third- search volume
quarter sales fulfilled by stores. for luxury brands
Target is investing in safety “Our strong results in 2020
increased 9 percent
precautions during the pandemic to reflect the benefits of our
entice consumers to shop in stores. year-over-year, but
multiyear effort to build a
durable and flexible model,”
the growth came
¬ A week after announcing
said Brian Cornell, chief “at a time when
its partnership with Ulta
Beauty, Target Corp. executive officer. site traffic to those
announced growth in sales For the three-month period same brands
across channels. ending Oct. 31, revenues grew dipped 2 percent
Target revealed quarterly 21.3 percent to $22.6 billion. year-over-year.”
results, improving on top- — Kellie Ell —— Arthur Zaczkiewicz Chaul Mindful Skincare
P R E S E N T E D B Y :
POWERED BY
INNOVATION
For prestige beauty innovator and contract manufacturer, MANA Products, the future is now.
T
wenty-twenty has been parency and sustainability into their ingredi-
a milestone year for ent statements and making them available to MANA Products’
renowned prestige beauty customers online and with QR codes,” Jaegly manufacturing facility.
innovator and contract said, adding that the industry as a whole is
manufacturer, MANA also “moving toward alternative sustainable
Products. The New York- packaging materials, reduction in excess
based company marks 45 packaging, and more eco-friendly ingredient
years in business and was also recently sourcing and manufacturing processes.”
acquired by Traub Capital. Under Traub, For MANA, deploying sustainable prac-
MANA can tap into the firm’s operational, tices is a top priority.
strategic and financial expertise. In return, The company, for example, is leading
Traub gets an industry-leading innovator with on the use of cold process and waterless
strong R&D capabilities. technology in its formulation and prod-
For MANA Products’ Chief Executive uct development, and it is committed
Officer, Robert Jaegly, the acquisition is a to supply chain and product ingredient
perfect fit that can help the company further transparency. Jaegly says MANA will be
evolve and innovate; aligning it with the 100% Roundtable of Sustainable Palm Oil
original vision of founder Nikos Mouyiaris, (RSPO) certified next year.
but for a new era in the beauty industry. Jaegly says the demand for more sustain-
Jaegly, who has decades of global business able products has gained momentum amid
experience under his belt, has positioned the COVID-19 global pandemic. Consumers
MANA as a color cosmetics and skincare are increasingly concerned with not only
products innovator that delivers sustainable what goes inside their bodies, but what also
and planet-friendly products that don’t goes on their bodies, and their skin — which
skimp on performance. is shaping how products are made and sold.
The company’s success is largely due to
leveraging consumer insights while forging It’s A Small World
deep collaborations with its brand partners The pandemic has also made the world a
— which includes conglomerate beauty smaller place, and Jaegly sees this as an op-
companies as well as smaller DTC and portunity for brands. Many heritage brands
emerging brands. To help develop those that were once only available in their local
partnerships, Jaegly and his team have markets/countries, are now available to a
launched the MANA Brand Accelerator global consumer base through online shop-
program, which is specifically designed for ping and social platforms,” he said. “We
emerging brands. Jaegly has also embedded anticipate that this trend will continue to
into the company’s manufacturing ethos grow and expand.” But to succeed, the CEO
“MANA Clean,” which the CEO describes as stresses the importance of knowing the local
the “best of the best” in formulation. and regional market, and the demographics
driving purchase decisions.
Let’s Be Clear And well before the pandemic outbreak, proven, proprietary cosmetic and skincare to goal setting and measures.”
Bringing to market truly sustainable prod- Jaegly said consumer preferences were products, as well as lower minimum order Jaegly said the company works hard to
ucts is no small task and requires adhering already shifting, which accelerated after quantities, enhanced customization options “develop the understanding of how each
to stringent guidelines and certifications. It’s COVID. “People are now relying on social and expedited speed to market.” individual contributes to the goals and why
been a challenge for businesses across the platforms for product demonstrations and The MANA Brand Accelerator program they are important. We have provided the
beauty sector. But for the consumer, they recommendations more than ever,” he says. also allows existing beauty brands “unprec- tracking tools to manage the operation at the
simply demand that brands offer greener “They’re not going into stores, and they’re edented access to MANA’s extensive library operator level in real-time.”
and cleaner products, which requires trans- not trying on makeup. Stores are moving to- of innovative formulas and finishes, allowing In practice, this means manufacturing
parency and authenticity. wards more of a localized distribution center them to select and procure items for promo- lines that can swiftly change over from
“Beauty brands are incorporating trans- model versus a traditional retail experience.” tions and seasonal introductions, as well as one product to another. Jaegly notes that
The CEO also says shoppers right now are their base businesses,” the CEO added. changeovers which previously took hours,
attempting to move from sheltering in place And it is a library that continues to grow now take minutes.
to “sheltering in public,” which is amplifying as trends evolve.
concerns for safety and health. The current trends informing MANA’s What’s Next?
For the beauty industry, Jaegly says compa- product development and innovation include Jaegly expects further consolidation in the
nies need to do “our part to help alleviate this skin health and its microbiome, of “skin flora” beauty industry, which he said is a “great
anxiety by creating and marketing product which requires probiotic products as well as way to leverage capital, location, technology,
forms and packages that help protect against proper hydration. And, aside from the afore- along with creating scalable platforms.”
the virus – single-use products, touchless mentioned waterless formulations and sus- Vertical integration will also come into
products, stick products … as well as formu- tainably sourced products, MANA is devel- play “as it creates the ability to have a com-
lations with hyper hygienic and skin barrier oping high-performance, clean-beauty items plete supply chain in one place,” the CEO
protective properties, and other traits.” that Jaegly describes as “cleanical products.” said, adding that this “simplifies everything
“I’m looking forward to seeing more of for the customer, allowing them to do
Brand Acceleration the ‘cleanical’ trend – which are high-perfor- what they do best — which is market their
Another notable pandemic-related trend mance products formulated with clean ingre- brands.” Jaegly added that MANA has re-
that is reshaping the industry is the explosive dients,” Jaegly said. “It’s a win-win for every- cently partnered with Meiyume and RPG to
To hear Robert growth of online shopping and the emer- body. Internally, we call it ‘MANA Clean,” and create vertical integration on a global scale.
gence of DTC brands. Stuck at home and it is our benchmark for the best of the best.” When asked about what excites him when
Jaegly discuss online, shoppers are trying new brands and he considers the future of the beauty indus-
Best In Class Manufacturing
innovation in the types of products, which has put a spotlight
on emerging beauty brands. In response, MANA also differentiates itself in the market
try, Jaegly is quick to respond. “Everything.
Absolutely everything,” he said.
prestige beauty Jaegly and his team have created the MANA by performing “faster, better and simpler” “As we adjust to this new normal — new
Brand Accelerator program, which makes it than the competition, Jaegly said. “The in- opportunities are emerging to help custom-
market. easier for brands to work with MANA. dustry demands shorter lead-times, smaller ers look and feel beautiful and safe,” Jaegly
“The Brand Accelerator program creates runs and lower inventory,” the CEO ex- said. “New categories, new technologies,
a seamless pathway for emerging and indie plained. “For us, it begins with the engage- new ingredients. It’s all good stuff. The
CLICK H E RE beauty brands that will allow them to part- ment process to upskill our operations team beauty industry is seizing this opportunity to
ner with MANA from start-up to stardom,” every year spending over 20 hours of annual continue what we’ve been doing, but to do it
Jaegly said. “The program features our training in everything from functional skills better — and we’re excited.”
DEEP DIVE 8
NOVEMBER 20, 2020
Skin-care brands are
in hot demand.
Beauty M&A Finds
THINGS MAY HAVE gotten weird taking more time, apart from certain
in the beauty dealscape over the past exceptions. Everyone’s looking for
few months as financial types found smaller companies because there
The White Space
themselves Zooming through due is still a scarcity of good assets, so
diligence, but the ongoing pandemic everybody’s trying to get into future
is not expected to put a stop to champions as soon as they can.”
beauty M&A going forward. He added the rush is also on
Those in the know are predicting a busy beauty M&A climate. Shifts in consumer trends toward since beauty companies command
BY ALLISON COLLINS AND JENNIFER WEIL online shopping, skin care, hair care such great margins and cash flow,
WITH CONTRIBUTIONS FROM SAMANTHA CONTI AND SANDRA SALIBIAN
and self care will have major impacts therefore often they don’t need a
on what buyers and investors are second round of financing.
looking for going forward, experts said. There are a handful of men’s
“Any time there’s change in the brands in the market, as well as
market and change in consumer businesses coming back up for sale
behavior, it drives M&A. These after pressing pause on processes due
are not temporary shifts, they are to the coronavirus. Bankers say they
permanent shifts,” said Vennette Ho, are busy having conversations with
managing director at Financo. founders looking to take risk off the
Bankers are busy, insiders said, table, and that there is still selective
and are expecting a variety of deal appetite from strategic buyers.
companies to hit the market in the “The markets have come back — no
coming months. Low interest rates one is afraid to go out in the market,
are expected to contribute to deal there’s no need to put a process on
volume, sources said. hold,” said Arash Farin, managing
Photograph by Adobe
“There are a lot of transactions on director at the Sage Group LLC.
the market. I don’t see any change But things are different than before,
on that, and there are probably and investors looking at growing
even more volumes,” said Laurent companies continue to inquire about
Droin, managing director of Eurazeo “the COVID-19 bump” — the spike in
Brands in Paris. “Transactions are sales, especially online, that many 
DEEP DIVE 9
NOVEMBER 20, 2020
Key
Takeaways
1. M&A activity is expected
to pick up heading into 2021, as
big beauty looks for brands that
reflect many of the permanent
consumer changes wrought by
the events of 2020.
2. Key areas of interest
include skin- and hair-care
brands, wellness-oriented
companies, technology plays,
men's and even manufacturing.
3. China is increasingly
important — from both the buy
and sell perspective.
companies saw this year — sources
said.
Beauty brands looking to do
deals should be prepared to walk
investors through COVID-19-era Direct-to-consumer
brands with proven
numbers, whether they went up or
digital prowess are
down, experts agreed. Brands that on every buyer’s list.
saw a big uptick because of exposure
to online or categories that saw Valuations can be sky high in around what consumers are looking of companies that were doing great
heightened consumer interest during beauty, but those types of dreamy for.” McPhilliamy ticked off DIY going into COVID-19 because they
the pandemic will need to explain multiples are only available to beauty, self care, personal health and had characteristics that were going
the sustainability of those figures. companies that meet a certain set hygiene as key categories. “Not to to make them successful outside
Similarly, brands who saw slumps due of standards, and those standards mention brands really took a stand of retailers…great digital content,
to overexposure to brick-and-mortar are changing. Investors and buyers and have been showing they care and great community, almost a lifestyle
retail or diminishing categories, like want companies with a strong digital they're taking action to address some following,” said Shaun Westfall,
makeup, would need to show how presence — but today, when they say of the social issues facing the nation. managing director at Jefferies.
they’re charting a path to recovery. that, they mean strong e-commerce That matters to consumers today Technology is another big area
“People want to have these sales versus a few years ago, when more than ever,” she added. of focus. “Communities and block
COVID-19 conversations in the they meant a strong social media Diversity is expected to become chains are very important today,” said
rearview mirror and say, ‘This is our operation. Skin, hair and wellness are more important to prospective Karine Ohana, a co-managing partner
new normal, this is not a two month all expected to remain hot categories, investors, some sources said. at Ohana & Co., referring to how
bump.’ What is sustainable is what following consumer shopping habits. the technology can help augment
the private equity [firms] want to Men’s may finally become a thing, companies' digital operations,
know,” said Ilya Seglin, managing based on the volume of men’s brands “Any time there’s traceability and sustainability
director at Threadstone Advisors. in the market. And manufacturing functions in today’s world where
COVID-19’s effect on beauty sales M&A, a busy sector for private equity change in the consumer trust is key. She added
is one of the things that earlier this firms not interesting in taking single- market and change investors are seeking companies with
year, caused many companies to brand risk, is expected to continue. market-changing business models.
pause their deal processes. “We find it interesting that some in consumer “I wouldn’t be surprised to see
But some of those companies have
come back out into the market, and
of the less sexy areas of home and
personal care, like soap, personal
behavior, it drives companies step up investments
in areas like L’Oréal has done
others are expected to re-initiate cleansing, household products have M&A. These are with ModiFace,” said Eva Quiroga,
M&A conversations in 2021.
“There have definitely been a
had record sales. Consumers are really
focused on their personal health and
not temporary managing director at Bank of America,
referring to the tech company
number of transactions that would hygiene,” added Kelly McPhilliamy, shifts, they are focused on artificial intelligence
have potentially gone to market in
2020 and many of them, regardless
managing director at Harris Williams.
“We’re going to continue seeing
permanent shifts.” and augmented reality. “Bringing
technology in-house is probably easier
of whether they’re doing extremely interest for skin care as a strong —vennette ho , financo with an acquisition than building it
well, just doing OK, or not well, got to category, in particular in regards yourself. The beauty of the ModiFace
the point where they wanted to have to natural skin care as well as relationship is that it’s so ingrained in
2020 under their belt. Especially with dermocosmetics in both prestige in “Diversity both in terms of your the L’Oréal model at this point.”
the impact of COVID-19, people didn’t mass channels. We’re going to see employee base as well as your Those are the types of companies that
want to have the questions around, continued interest in hair care as the customer demographic has become people are interested in, sources noted.
is this a COVID-19 bump or slump?” category continues to outperform increasingly important. Being able Strategic buyers, struggling with
said Janki Gandhi, managing director the other categories,” said Luc-Henry to show that your brand is truly exposure to brick-and-mortar sales
at Goldman Sachs. Rousselle, managing director at inclusive and you do address a range at a time of dwindling in-real-life
While company sales might have seen William Hood & Co. of demographics — partners are shopping, will need to look to buy
Photograph by Adobe
fluctuations because of the pandemic, “This year, it's all about how brands going to be focused on that, especially brands that are growing, and are
valuations for beauty companies have pivoted,” McPhilliamy said. “Brands with the current times,” Gandhi said. likely to consider divesting brands
not, sources said. “It’s like COVID-19 really found their footing by focusing In many cases, the companies that that are not. Shiseido, Unilever
never happened; valuations are back up on digital marketing and direct-to- are desirable today are the same and Henkel, have publicly talked
for anybody who did well throughout consumer, third party and e-comm… firms that attracted interest prior of divestitures. Reckitt Benckiser is
COVID-19,” Seglin said. as well as emphasizing solutions to the crisis. “There’s a whole cast reported to be selling a portfolio 
DEEP DIVE 10
NOVEMBER 20, 2020
of personal-care brands including Sephora Southeast Asia — everybody’s
Clearasil, Veet, Scholl and E45 skin looking for brands that have some
cream, which could command up sort of Asian presence,” Westfall said.
BRANDS WITH BUZZ
Here, the companies that analysts expect to see considering
to 1 billion pounds, according to But it’s not all interest from the sell
M&A options in the year ahead.
Reuters. Revlon has been considering side. Increasingly, buyers are coming
divestitures for more than a year. And from Asia as well. “We also see an
industry sources said that the Estée increase in interest and action from
Lauder Cos. Inc. may be considering Chinese and Asia buyers looking to
divestitures in makeup and hair. accelerate Western brands that have
Growth is important, but so is demonstrated success in the region,
profitability, sources said — especially either through Tmall or Sephora China.
when it comes to direct-to-consumer People have talked about interest from
businesses. that community for a long time, but
“In dtc, the old days of trading now we're starting to see that translate
off rapid growth with no profits is into activity,” McPhilliamy said.
from left:Erno Laszlo's Firmarine Lift Face Powder Mask; Shampoo and conditioner
a nonstarter,” said Andrew Shore, Some executives expect further
bottles from Function of Beauty;Madison Reed Radiant Cream Color;
managing director at Moelis. consolidation among travel-retail Tata Harper's Clarifying Mask; Il Makiage’s foundation range.
“Strategics and private equity operators, as their businesses have
groups are looking for an earlier practically ground to a halt for months Aroma-Zone, the French, Manzanita bought Kevyn
proof point that the business might on end while debt has accumulated. natural DIY cosmetics brand, Aucoin, estimated to have sales
not be scaled into full profitability but The other area of increased buyers is preparing to go on the block, between 20 million and 40
can show some level of profit at the is special purpose acquisition vehicles, according to industry sources. million pounds, two years later.
Its first store opened in Paris Function of Beauty is said to
bottom line,” said Intrepid managing which have permeated the public
in 2014, and was followed by be in the discussion process,
director Steve Davis. markets over the past year. Hims
six others in France, while but close to inking a deal. The
Valuations in the sector are slowly recently unveiled that it would go
the brand’s online sales have business started by making
shifting from revenue-based multiples public via a SPAC acquisition at a $1.6 customized hair products, and
boomed. Aroma-Zone is
to profitability-based multiples, billion valuation, and industry sources reportedly expecting about 100 has since branched into other
according to Michael Toure, founder noted that could be the case for other million euros in 2020 sales. product categories.
and chief executive officer of Toure companies as well. Several beauty Bios Line, an Italian Goli, a brand that makes
Capital. “Now, people will look at businesses have openly talked about manufacture of natural apple cider vinegar vitamins, is
profitability,” Toure said, though he the possibility of the public markets, cosmetics, food supplements said to be navigating inbound
noted that isn’t the only thing buyers including Morphe parent company and medical devices for inquiries with the help of
will look at — “We are not there yet Forma Brands, Glossier and Il Makiage. personal care and wellbeing, Centerview. Industry sources
where businesses get valued only on “More and more companies that is reported to have garnered said the brand is surprisingly
interest from numerous funds, big with broad distribution and
the profitability vertical.” are getting to be of a certain scale —
including 21 Invest. Bios Line a solid direct-to-consumer
Global potential, too, has never $150 million-plus revenue size — a
reportedly generated more than business, with about $300
been more important. Buyers want number of them are starting to think
30 million euros in 2019 sales. million in net sales.
brands that either have, or could, about, is a strategic exit what we’re Gray Away, a small brand
Men’s brands are hot
expand into China and the rest of the really going to be looking for in terms right now, which sources that’s part of Mana Products, is
Asian market, experts noted. of a deal, or does it make sense at said is because of Millennial said to be coming to market with
“All brands need to be able to some point to consider the public men taking personal care Threadstone. The business is
enter Asia — China cross-border, or markets?” Goldman’s Gandhi said. ■ routines into products beyond said to have $10 million in sales.
soap. Several, including Il Makiage has hired
Duke Cannon with Houlihan Centerview to explore a
Lokey, Every Man Jack with possible sale or IPO, the
Intrepid, Manscaped, Brickell company confirmed to WWD.
Men’s Products, Dude The business is expecting
Products and Dr. Squatch are $150 million in net sales
said to be in the market. for 2020, after successfully
Industry sources said Duke building and scaling an online
Cannon has about $50 million makeup business.
in sales and $10 million in Kitsch, a hair accessories
Ebitda, that Manscaped has business, is said to have hired
about $100 million in sales, Financo to explore options.
and that Dr. Squatch has about Madison Reed, the direct-to-
$100 million in sales with $10 consumer hair color business, is
million in Ebitda. Manscaped said to be raising another round,
ceo Paul Tran told WWD in according to industry sources.
an emailed statement: “So Merci Handy, a
many rumors going around. French personal-care brand
Manscaped is much larger than conceived for Millennials, is
that [smiley face].” said to be looking either for
Erno Laszlo is expected to further investment or maybe
come back to the market next a sale. The brand, whose hero
year, industry sources said. The product is a hand sanitizer,
business has done well in China just entered the U.S. and U.K.
and is said to have $120 million Its estimated annual sales are
in retail sales. about 20 million euros.
Eve Lom and Kevyn Sources are also talking about
Aucoin are at least two of the Tata Harper, which is also said to
Genz photograph by Dave Tacon
brands Manzanita Capital is be evaluating potential options.
said to be shopping around. Eve Industry sources said
Lom was founded 30 years ago the investment community
and acquired by Manzanita in remains interested in Thrive
May 2013. Industry sources Causemetics, which is said to
Gen Z and Millennial estimated it has sales between have hired Goldman Sachs to
shoppers in China are $17 million and $18 million. evaluate options.
fueling interest in brands
that are buzzy there.Clinically- Effective, Biocompatible Skincare
BEAUTY ROLODEX 12
NOVEMBER 20, 2020
U.S.-based Venture
Capital and Private
Equity Beauty
Investors
The key financial players in the beauty sphere.
BY ALLISON COLLINS
BEAUTY HAS BEEN a hotbed group seems to grow by the year, as
of M&A activity for years now, with more firms hope to realize outsized
strategic buyers vying to take over exits with major returns. Here, a
companies and capabilities, and paying rolodex of key U.S. venture capital and
top dollar to do so. Before that, though, private equity investors in the beauty
come the early-stage investors. That sphere, in alphabetical order.
ADVENT INTERNATIONAL BERTRAM CAPITAL PARTNERS
Headquarters: B o sto n Headquarters: S a n M a te o, C a l i f.
Current Beauty Investments: Current Beauty Investments:
O l a p l ex Pa u l a ’s C h o i c e
Deal Size: Invests $100M to $2B in Deal Size: I nve st s $ 2 5 M to $ 1 0 0 M
companies with $50M-plus in sales. i n c o m p a n i e s w i t h b et we e n $ 3 0 M
Key Player: Tr i c i a G l y n n , to $ 2 5 0 M i n s a l e s . $ 2 5 0 , 0 0 0 to $ 1 M i n c o m p a n i e s GENERAL ATLANTIC
m a n a g i n g d i re c to r Key Player: J ef f D ra za n , w i t h a t l e a st $ 2 M i n s a l e s . Headquarters: N ew Yo r k
m a n a g i n g d i re c to r Key Player: Desiree Gruber, founder Current Beauty Investments:
ALLIANCE CONSUMER GROWTH F o r m a B ra n d s , G rove C o l l a b o ra t i ve
Headquarters: N ew Yo r k a n d THE CARLYLE GROUP ENCORE CONSUMER CAPITAL Deal Size: I nve st s $ 2 5 M to $ 5 0 0 M
Lo s A n g e l e s Headquarters: Wa s h i n g to n , D.C. Headquarters: S a n F ra n c i s c o i n c o m p a n i e s of va r y i n g s i ze s .
Current Beauty Investments: Current Beauty Investments: Current Beauty Investments: Key Player: A n d rew F e r re r,
H a r r y ’s , M i l k M a ke u p, O u a i , Pe r fe c t D i a r y, To k i wa S u p e rg o o p, B u t te r Lo n d o n m a n a g i n g d i re c to r
N u d e st i x , Pa c i f i c a , Ta ta H a r p e r Deal Size: I nve st s $ 5 0 M to s eve ra l Deal Size: I nve st s $ 5 M to $ 4 0 M
Deal Size: I nve st s $ 5 M to $ 3 0 M b i l l i o n d o l l a rs p e r c o m p a ny, i n i n c o m p a n i e s w i t h b et we e n GRYPHON INVESTORS
i n c o m p a n i e s w i t h $ 5 M to $ 5 0 M c o m p a n i e s w i t h a t l e a st $ 7 5 M $ 1 0 M to $ 1 0 0 M i n s a l e s . Headquarters: S a n F ra n c i s c o
in sales. in sales. Key Players: Ro b e r t B row n , Current Beauty Investments:
Key Player: J u l i a n S te i n b e rg , Key Player: J a y S a m m o n s , m a n a g i n g d i re c to r, N i c h o l e N ova k Ro C S k i n c a re, M i l a n i C o s m et i c s
c ofo u n d e r a n d m a n a g i n g p a r t n e r m a n a g i n g d i re c to r F e r ra ra , v i c e p re s i d e n t Deal Size: I nve st s $ 5 0 M to $ 5 0 0 M
i n c o m p a n i e s w i t h $ 5 0 M to $ 2 5 0 M
ANCORA INVESTMENT HOLDINGS CLERISY FENWICK BRANDS in sales.
Headquarters: C h i c a g o Headquarters: M i a m i Headquarters: Birmingham, Ala. Key Player: M a t t F a r ro n , p a r t n e r
Current Beauty Investments: Current Beauty Investments: N / A Current Beauty Investments:
I n d i e Le e , Va p o u r B e a u t y, Deal Size: I nve st s $ 5 M to $ 2 0 M i n M a d i s o n Re e d , U rs a M a j o r GRACE BEAUTY CAPITAL
Ta o s Ae r C l e a n D e o d o ra n t companies with$10M-plus in sales. Deal Size: I nve st s $ 3 M to $ 1 2 M i n Headquarters: N ew Yo r k
Deal Size: I nve st s va r y i n g Key Players: A l exa n d ra W i l k i s companies with $5M-plus in sales. Current Beauty Investments:
amounts in companies with up W i l s o n ; L i s a M ye rs , c ofo u n d e rs Key Player: E l i za b et h S tewa r t , Pa u s e We l l Ag i n g , S u p e rg o o p,
to $ 1 0 m i l l i o n i n s a l e s . partner P i n ro s e, G l a m s q u a d , B i rc h b ox ,
Key Players: N i c k y K i n n a i rd , CORNELL CAPITAL H a r r y ’s
Lo r i Pe re l l a K re b s , c o -fo u n d e rs Headquarters: N ew Yo r k FINN CAPITAL PARTNERS Deal Size: I nve st s $ 5 0 0 , 0 0 0 to
Current Beauty Investments: Headquarters: S a n F ra n c i s c o $5M in companies with less than
BAIN CAPITAL K n ow l to n D eve l o p m e n t C o r p. , Current Beauty Investments: $20M in sales.
Headquarters: B o sto n B l u e M i st ra l S ta r fa c e, C row n Af fa i r, W i n k y Lu x , Key Player: F ra n k F a z z i n g a ,
Current Beauty Investments: Deal Size: I nve st s $ 2 5 M to K j a e r We i s , U rs a M a j o r, N e e d e d , p re s i d e n t
Maesa, WWP Inc. $ 1 0 0 M i n c o m p a n i e s w i t h b et we e n C a ke, P l u s , Va c a t i o n
Deal Size: I nve st s $ 1 5 0 M - p l u s $ 1 0 M to $ 5 0 0 M i n s a l e s . Deal Size: I nve st s $ 1 0 0 , 0 0 0 HIGHLANDER PARTNERS
i n c o m p a n i e s w i t h $ 1 0 0 M to Key Player: J u st i n e C h e n g , p a r t n e r to $ 1 . 5 M i n c o m p a n i e s w i t h u p to Headquarters: D a l l a s
$5B in sales. $10M in sales. Current Beauty Investments: N / A
Key Players: R ya n C ot to n , CULT CAPITAL Key Player: Pa t F i n n , Deal Size: Va r y i n g a m o u n t s i n
m a n a g i n g d i re c to r ; M i ra y To p a y, Headquarters: N ew Yo r k m a n a g i n g p a r t n e r a n d c ofo u n d e r b u s i n e s s e s w i t h s a l e s b et we e n
principal Current Beauty Investments: $10M and $100M
S u p e rg o o p, La w l e s s B e a u t y FORERUNNER VENTURES Key Player: D a v i d O l s e n ,
Illustration by Matthew Billington
BEECHWOOD CAPITAL Deal Size: Invests up to $10M in Headquarters: S a n F ra n c i s c o m a n a g i n g d i re c to r
Headquarters: We l l e s l ey, M a s s . companies with at least $2M in sales. Current Beauty Investments:
Current Beauty Investments: Key Player: C h r i st i n e H o l c o m b, G l o s s i e r, C u ro l o g y, P ro s e, IMAGINARY VENTURES
Ko s a s , S h a n i D a rd e n S k i n C a re, b ra n d a s s o c i a te N e c e s s a i re Headquarters: N ew Yo r k
V i o l et G rey Deal Size: I nve st s $ 1 M to $ 1 0 M i n Current Beauty Investments:
Deal Size: Invests $2M to $5M in DGNL VENTURES c o m p a n i e s w i t h $ 1 M to $ 1 0 M - p l u s B re a d B e a u t y S u p p l y, H u m
companies with $5M to $20M in sales. Headquarters: N ew Yo r k in sales. N u t r i t i o n , N é c e s s a i re , H a w t h o r n e,
Key Player: La r r y Ka h n , Current Beauty Investments: N / A Key Player: K i rste n G re e n , Ko s a s , G l o s s i e r
fo u n d e r a n d m a n a g i n g p a r t n e r Deal Size: I nve st s b et we e n fo u n d e r a n d m a n a g i n g p a r t n e r Deal Size: I nve st s $ 1 M to $ 1 0 M You can also read
