Global private equity firm TPG Capital has made a strategic minority investment in skincare brand Rodan + Fields.

WHO: Rodan + Fields was founded in 2002 by dermatologists Dr. Katie Rodan and Dr. Kathy Fields with the mission to give people the best skin of their lives and provide an opportunity to empower entrepreneurs. The company has leveraged innovative products, a high-tech and high-touch business model, and their powerful network of 200,000 independent consultants to foster ongoing dialogues, personalized experiences, and a passionate community of brand advocates. Born in the digital era, Rodan + Fields is designed to directly reach consumers where they live and shop via mobile and social networks.

TPG is a leading global alternative asset firm founded in 1992 with more than $82 billion of assets under management and offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, Seoul, and Singapore. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. TPG’s previous beauty investments (made through TPG Growth) include E.l.f. Cosmetics, which the firm took public in 2016, and Beautycounter.

WHY: The minority investment by TPG will provide Rodan + Fields with access to best-in-class business-building expertise, capabilities, and resources as the brand continues its path of disruptive growth domestically and in new markets across the globe.

IN THEIR OWN WORDS: “TPG’s successful track record growing iconic brands and their belief in our disruptive model, innovative products, and powerful Independent Consultant Community make them an excellent partner,” Diane Dietz, CEO and President of Rodan + Fields, said in a release. “We are energized by the opportunities that lie ahead of us as we expand domestically and globally and look forward to optimizing our strengths with TPG’s expertise.”

“As a firm with a history of investing in businesses that are fundamentally changing their industries, we see Rodan + Fields as being at the intersection of emerging consumer trends and technology disruptions,” said Jim Coulter, co-CEO and co-founder of TPG. “This is exactly the kind of partnership we look for—an outstanding brand with proven success, an experienced and talented management team, and significant runway for growth.”

DETAILS:

• TPG Capital said it took a minority stake in Rodan + Fields.
• Terms of the deal were not disclosed.
• Rodan ≠ Fields did $1.5 billion in sales in 2017, up from $1.15 billion in sales for the prior-year period, and grew at a rate of 40 percent.
• The Founders will remain at the heart of the brand and committed to their vision, while the Company’s Senior Leadership team will keep leading the strategy for growth and day-to-day operations.
• Perella Weinberg Partners LP acted as exclusive Financial Advisor and Wilson Sonsini Goodrich & Rosati served as Legal Advisor to Rodan + Fields on the transaction.
• Weil, Gotshal & Manges served as Legal Advisor to TPG.
• Following the transaction, Jim Coulter, co-CEO and co-founder of TPG, and Paul Hackwell, TPG Capital sector lead for consumer investments, will join Rodan + Fields’ Board of Directors.