Star Avenue Capital has made an investment in Macadamia Natural Oil, a professional hair care brand. Macadamia is Star Avenue’s second investment in the fashion and beauty space, having previously invested in J Brand, a denim and apparel brand.
Macadamia Natural Oil is a professional hair care brand that incorporates nature-based ingredients, including macadamia and argan oils, into professional hair care products. The company was founded in 2009 and is based in Chatsworth, CA (www.macadamianaturaloil.com).
Star Avenue is a consumer growth equity vehicle formed in partnership with private equity firm Irving Place Capital and entertainment and sports agency Creative Artists Agency. Star Avenue invests in branded consumer products and branded retail companies. The firm has offices in New York, NY and Los Angeles, CA (www.staravenuecapital.com).
Roth Capital Partners acted as the exclusive financial advisor to Macadamia. Bank of America Merrill Lynch’s Global Commercial Banking Group provided working capital financing.
Star Avenue will work with CEO and Founder John Fasan to support the company’s growth and to help build Macadamia into a leader in the global hair care industry. “Star Avenue is thrilled to partner with a dynamic entrepreneur like John,” said Craig Elson, Managing Director of Star Avenue Capital. “He has built a global business in a very short period of time. We look forward to working with him to continue growing the company’s international business while applying our resources to bolster Macadamia’s U.S. presence.”
“Star Avenue shares our vision for the Macadamia brand and brings unique resources, capabilities, and insight that would otherwise not be available to the company. Star Avenue has access to Creative Artists Agency’s extensive network of relationships and resources as well as the agency’s unique insight into popular culture,” said Mr. Fasan. “Irving Place Capital has relevant investment experience in the consumer and retail sectors, which are valuable assets for high-growth consumer brands such as Macadamia. These additional resources make Star Avenue the right partner for Macadamia – one that can help me transform my business.”
Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities and the firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 55 companies and manages over $4 billion in capital including its current $2.7 billion institutional fund. The firm is located in New York (www.irvingplacecapital.com).
Creative Artists Agency is a talent agency, representing professionals working in film, television, music, video games, theatre, and the Internet, and provides a range of marketing and consulting services to corporate clients. The company also represents more than 700 athletes in football, baseball, basketball, hockey, soccer, tennis, and golf, and works in the areas of broadcast rights, corporate marketing initiatives, licensing, and sports properties for sales/sponsorship opportunities. The agency has eight offices and is based in Los Angeles (www.caa.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 9-14-12