Luxury Brand Partners (LBP), the team behind such brands as R+Co, IGK, Becca, and Oribe Hair Care, has raised a $50 million minority investment and entered into a new strategic and financial partnership with Bookend Capital Partners (Bookend).

WHO: Luxury Brand Partners is one part brand incubator, one part venture fund, and one part brand operator in the beauty space. LBP is a company that develops and nurtures artist-driven beauty brands. Officially founded in 2012, LBP has grown to over 200 employees with a portfolio of brands sold in over 20 countries and across retail and professional beauty channels. Luxury Brand Partners is headquartered in Miami with offices in New York and Los Angeles

Bookend Capital Partners is a new private equity fund founded by Alexander S. Panos, formerly a long-time member of the leadership team at TSG Consumer Partners. Over the last 20 years, Alex has been an active investor in trailblazing consumer product companies. Bookend invests capital on behalf of institutions and the Bookend general partnership and has a long-term investment horizon.

WHY: The minority investment will help fuel growth, launch more brands, and continue innovating in the beauty and retail sectors.

IN THEIR OWN WORDS: “This is such an exciting time for LBP. There is a groundswell of change and newness in the beauty industry—and we love leading the charge in that movement. This collaboration with Bookend allows us to accelerate the development and launch of many groundbreaking concepts,” Deva Finger, founder and CEO of Luxury Brand Partners, said in a statement. “We have historically been self-funded but found a like-minded and respected partner in Bookend that shared our vision for incubating cult-favorite brands.”

“Luxury Brand Partners is a remarkable success story of brand building,” Panos, Bookend’s founder and CEO, said in a statement. “They have assembled an extraordinary portfolio; their team is top-class and driven by a common mission to be the best in the world at what they do. I could not have picked a better company as the first investment of our new fund.”

“Alex is one of those rare investors who exclusively partners with best-in-class brands that truly engender customer loyalty—and his instincts for identifying where the market is going, and the teams that are doing it, are unparalleled,” shared Dan Langer, President of R+Co and CMO of Luxury Brand Partners. “I’m beyond excited to work with the Bookend team as we continue to anchor R+Co as the top prestige brand in hair care and expand into new salon-focused categories.”

“I chose to join LBP this past year because of its incredible track record and innovative vision. This partnership will greatly expand our reach as we continue to add the best talent in-house—both corporate and artistic. I look forward to making some very exciting announcements in 2020,” said Nancy Bernardini, COO of Luxury Brand Partners.

DETAILS:

• Bookend Capital made a $50 million minority investment in LBP.
• Specific terms of the deal were not disclosed.
• According to WWD, LBP is said to be on track to do $500 million in sales for 2020.
• LBP’s current brand portfolio includes R+Co, V76, Smith & Cult, IGK, and In Common.
• LBP developed Oribe, which it sold to Kao for about $400 million in 2017. Sources estimated Oribe has between $85 million and $100 million in sales, with $30 million in EBITDA.
• The group developed Pulp Riot, which L’Oréal is said to have paid more than $100 million for. At the time of the sale in May 2018, Pulp Riot had more than 675,000 Instagram followers and net sales of $11 million.
• LBP turned Becca Cosmetics around before selling it to The Estée Lauder Cos. Inc. for an estimated $230 million in October 2016. The brand was expected to generate $80 million in revenue for 2016, up from $40 million in 2015. LBP invested in 2012 when Becca was only doing about $3 million in sales, investing $7.5 million to turn Becca around.
• Alexander Panos will join LBP’s board of directors.
• While LBP plans to ramp up its brand launches, the business is also weighing the possibility of add-on acquisitions.
• Deva Finger, LBP founder and CEO, noted that it’s likely more LBP brands will be sold, but the possibility of selling the entire business is small.