Smashbox, Pureology investor acquires minority stake in Huda Beauty
TSG Consumer Partners, the private equity firm who has offered backing to Revolve, Smashbox Cosmetics, Pureology and E.l.f. Cosmetics among others, has acquired a minority stake in fast growth beauty company Huda Beauty.
Huda Beauty was founded in 2013 in Dubai, originally as a false eyelash brand. It since has expanded into a full line of beauty and cosmetics products sold at Sephora, Harrods, Selfridges, and Cult Beauty, as well as through its own e-commerce site.
The brand has grabbed much media attention lately. Founder and CEO Huda Kattan was named a 2017 top beauty influencer by Forbes. She was also named one of Time's most influential people on the internet.
Kattan said of the investment from TSG Consumer Partners (TSG) that it will sustain the company's expansion as it goes from a nimble startup to an exponentially growing beauty brand. She said the brand will continue to stay close to its consumer, explaining "Our mission remains the same, and that is to make beauty something that everyone feels they are a part of."
Colin Welch, managing director of TSG said the company has been investing in the beauty industry for the past decade. He said during that time they "have seen a marked shift in the way consumers engage with brands. Consumers today want an authentic connection with a founder and to feel as though they are part of something much larger than themselves."
To that end, both companies are looking at Huda Beauty's strong digital community to help drive global brand growth in the future. The investment will also allow Huda Beauty to create its own angel fund, called Huda Beauty Angels. Kattan said the fund will " lend seed money, mentoring and advice to aspiring entrepreneurs" and help them succeed in their own businesses.
Financial terms of the agreement were not disclosed.
TSG has $5 billion assets invested in branded consumer products. In addition to apparel and beauty investments, TSG has interests in Duckhorn Wine Company, Vitaminwater, Planet Fitness, Backcountry, and Sexy Hair.
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