Could 2024 be the year for growth investment in small luxury niche brands? Not ones with valuations of $10 million and upwards but those under $5 million—the wild and hungry dogs, some of the most experimental and innovative players in the fragrance industry, where creativity, passion, and risk are daily fare?Conventional wisdom says no. Traditional thinking suggests that the most lucrative investments lie in established brands valued at more than $5 million. Joel Palix, owner of Palix Unlimited M&A, a firm specializing in beauty industry assets, says, “I primarily advise brands when they do at least $5 million. When a brand reaches $5 million, it starts to become visible to investors.” Olivier Mariotti, General Manager of Etat Libre d’Orange, agrees noting that big investors usually target companies with values exceeding $10 million, often closer to $20 million. This perspective is backed by recent investments, such as:Advent International’s acquisition of a majority share in Parfums de Marly and Initio Parfums Privés in June 2023Manzanita Capital's acquisition of a majority stake in D.S. & Durga in August 2023Private equity firm Vendis Capital’s investment in Skins Cosmetics in January 2024Eurazeo’s minority investment in Ex Nihilo in January 2024Kering Beauté's investment in Matière Première in June 2024Perhaps driven by stiff competition for high-valuation brands or because smaller brands are gaining visibility through more far-reaching and effective PR and presence at trade fairs—such as Esxence, Pitti Fragranze, TFWA, Beautyworld Middle East, and Cosmoprof—potential investors are looking into the largely untapped territory of fragrance...