L Catterton, the largest consumer-focused private equity firm created by LVMH, Groupe Arnault, and Catterton, has invested in probiotic skin care brand TULA.
WHO: Dr Roshini Raj, a board-certified gastroenterologist and internist, co-founded the brand in 2014 with Ken Landis—also co-founder of Bobbi Brown—and Dan Reich, a tech entrepreneur. TULA, meaning “balance” in Sanskrit, produces products that are formulated with patented Probiotic Technology designed to improve the overall health and appearance of skin by restoring and supporting the skin’s microbiome. The brand is currently only distributed in the US through SpaceNK and continues to be sold via QVC’s multiplatform retail model, as well as online.
L Catterton, the world’s largest consumer-focused private equity firm, was formed in 2016 through the partnership of Catterton, LVMH, and Groupe Arnault. L Catterton has significant experience investing in the beauty space, including brands such as Bliss, Cover FX, Frederic Fekkai, StriVectin, CLIO Professional, Dr. Wu, Kopari, Ideal Image, and Intercos Group.
WHY: The brand plans to grow in existing channels, with a focus on content and digital. The investment will be used to drive TULA’s rapid growth by funding marketing, working capital, and product development.
IN THEIR OWN WORDS: Jon Owsley, Co-Managing Partner, L Catterton Growth Fund, told Cosmetic Business: “TULA appealed to us because it is the first premium beauty brand to leverage probiotics across its entire product line. … We see a tremendous opportunity to accelerate TULA’s growth by capitalising on its innovative formulations, strong relationship with QVC, distinctive and digital-first positioning, and talented management team.” Julia Straus, Chief Executive Officer of TULA, added: “L Catterton brings deep knowledge of the consumer space and an unparalleled track record helping boutique beauty brands thrive and grow.”
- According to WWD, industry sources estimated the round was worth $8 million.
- The business is said to have grown more than 400 percent in 2016.
- At QVC alone, Tula generated a 78% increase in distinct customers, according to Rachel Ungaro, vice president of buying for apparel, accessories, beauty, and jewelry.
- Terms of the transaction were not disclosed.
Read the full press release at PR Newswire.