Key Takeaways:

• Investors are looking down the K-beauty value chain for deals.
• European private equity firm CVC Capital Partners’ investment values the company at $2.1 billion.
• The firm has previously invested in Korean beauty companies including PharmaResearch and StarVision.

K-beauty distribution platform Silicon2 secured investment from European private equity firm CVC Capital Partners.

WHO: Established in 2002, Silicon2 offers more than 600 brands to over 3,300 customers across 177 countries, primarily through its online wholesale platform, StyleKoreanKbeautyWholesale.com. Its customers include leading retailers such as Boots, Sephora, Ulta, Rossmann, Superdrug, and iHerb, as well as small- and medium-sized retailers and sub-distributors.

CVC Capital is a leading global private markets manager founded in 1981. It has €212 billion in assets under management across private equity, secondaries, credit, and infrastructure strategies through a network of 30 local offices globally.

WHY: The investment will support the company’s continued global expansion of distribution and logistics infrastructure across Europe, the US, the Middle East, and Asia.

IN THEIR OWN WORDS: EC Cho, Senior Managing Director and Co-Head of CVC Korea, said, “Silicon2 is a high-quality, founder-led business with a leading position in the rapidly growing global K-beauty market. We see significant opportunity to support its continued expansion, leveraging our experience in internationalizing businesses and our global network to help Silicon2 reach its full potential.”

DETAILS:

• CVC Capital Partners to acquire a 9.23% stake in Silicon2 through a primary issuance of redeemable convertible shares.
• The...