The funding staff from Castanea Partners has ventured out to begin a brand new personal fairness agency known as Stride Consumer Partners.
Stride will deal with “passion brands” within the magnificence and private care, meals and beverage, outside and lively way of life and multi-unit companies industries, in keeping with Steve Berg, companion at Stride.
“Those brands that have a mutual love affair with that consumer, it’s not the brand they like, it’s the brand they love and can’t live without,” Berg mentioned. “We’re only focusing on those areas of consumer where that passion is most vibrant.”
Stride plans to go “narrow but deep” in these classes, Berg mentioned, and companion with founders and administration groups.
Castanea had a strong observe report in magnificence for exiting manufacturers to huge strategic patrons. The agency offered Urban Decay to L’Oréal, Tatcha to Unilever, First Aid Beauty to Procter & Gamble and Drybar to Helen of Troy and WellBiz Brands.
Berg mentioned the staff departed Castanea, which isn’t making any new investments, with the blessing of the agency’s founders. “They were incredibly gracious in giving us the choice of continuing on as Castanea or supporting us as we launched something new. We decided to launch Stride largely in Castanea’s image,” Berg mentioned.
“We felt that starting from scratch would be energizing,” Berg added. Former Castanea workers Mike Banu, Tim Burke, Tom First, Sharon Fox, Juan Marcos Hill, Colleen Love and Allyson Yorks have additionally joined Stride.
The agency has tapped L’Oréal veteran Nicole Fourgoux as an working companion. Most lately, Fourgoux was common supervisor at It Cosmetics. She has additionally labored beneath Carol Hamilton in mergers and acquisitions, and helped combine Carol’s Daughter into L’Oréal.
“I really love the space of founder-led brands,” Fourgoux mentioned. “It’s one of the most exciting places in beauty.”
“I’ve heard so many stories over these past 10 years of founders who felt like at a critical phase of their business they needed different kinds of advice and they wanted different sounding boards that had hands-on operating experience with strategics,” Fourgoux mentioned, noting that she needed to become involved earlier in manufacturers’ life cycles.
Stride will look to put money into manufacturers and companies which might be in “chapter three,” Berg mentioned, which means they’re past the enterprise capital stage. The agency will search for manufacturers which have been capable of drive repeat buy. Investment sizes will differ, from round $15 million to greater than $100 million per deal, with the opportunity of additional funding down the highway, Berg mentioned. The group will make each minority and majority investments in manufacturers, and can search for firms who’ve a robust digital presence.
“You want to be where the customer wants to find you, and 15, 20 years ago, that was wholesale, but today, that’s omnichannel,” Berg mentioned. “Whether it’s a digitally native brand that wants to compliment all of that brand awareness by also having some highly selective wholesale distribution, that can make a lot of sense.…We’ve helped folks really increase their direct to consumer capabilities and revenues, as well.”
In magnificence, Fourgoux mentioned Stride will look to speculate throughout conventional classes and rising ones. “For us, the guidance is really what are the brands that are exceptionally well crafted with a very strong relationship for the consumer,” Fourgoux mentioned. “Right now we are more in the traditional segments but frankly, if there’s anything that stands out and that has opportunity to grow into a holistic beauty approach, it’s interesting to look at as well.”
For extra from WWD.com, see: