In Brands, Finance

Castanea Partners has made a minority investment in Tatcha, a luxury skincare brand inspired by timeless Japanese beauty rituals.

WHO: Tatcha is a luxury beauty brand founded by Victoria Tsai in 2009. While in Kyoto, Tsai discovered the timeless beauty rituals of Japan, beloved for centuries and practiced even today. Through her research, she unearthed a 200-year-old beauty manuscript detailing the rituals made popular by geishas. “Tatcha” refers to the Japanese word for “standing flower” and is the inspiration for the company’s pure and simple approach to effective skincare without harmful additives or unnecessary ingredients.

Castanea Partners is a middle-market, consumer-focused private equity firm founded by operating executives and private equity professionals. They partner with promising small and mid-sized consumer product and services brands, including companies in lifestyle apparel and accessories, beauty and personal care, food and beverage, and outdoor and leisure. They typically invest between $15 to $150 million of equity in businesses where they have investing and operating expertise. Castanea has approximately $1 billion under management and is currently investing from a $600 million fourth fund.


“Tatcha stands out for its high-quality products and authentic brand heritage,” said Steve Berg, a Managing Partner at Castanea. “We look forward to working with Vicky and the team to support the company’s growth.”

“We’re honored to work with Castanea because of their unique experience in building luxury brands in beauty and beyond,” said Vicky Tsai, Tatcha’s CEO. “Steve and Janet are star players in the beauty industry and have a reputation for being great partners. We are also deeply grateful to Financo for bringing us together, and to Vennette Ho for her tireless work to help us find our perfect match.”

“We believe that Castanea is the right thought partner to build a luxury, digitally driven brand for the future,” added Brad Murray, Tatcha’s President.  

“This is a very exciting investment for us,” said Janet Gurwitch, Operating Partner at Castanea, and former founder and CEO of Laura Mercier. “The company is at a stage in its development where our deep industry and operating expertise will add value as Tatcha pursues its global growth potential.”  


  • Castanea made a minority investment in Tacha.
  • Terms of the transaction were not disclosed but WWD said sources indicated Castanea bought around 30% of the business.
  • The same sources said Tatcha is on track to do about $75 million in retail sales for 2017.
  •  Early-stage Tatcha investors Beechwood Capital and Finn Capital Partners remain on board.
  • Janet Gurwitch and Steve Berg will be joining Tatcha’s board of directors.
  • Financo and Mintz Levin represented Tatcha.
  • Ropes & Gray represented Castanea.
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