TPG Invests in Rodan + Fields
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TPG Invests in Rodan + Fields

TPG Capital has made a minority investment in Rodan + Fields, an American manufacturer and multi-level marketing company specializing in skincare products including cleansers, moisturizers, sunscreens, and exfoliants.

Rodan + Fields was founded in 2007 by Katie Rodan and Kathy Fields. Dr. Fields and Dr. Rodan met in 1984 during their dermatology residency at Stanford’s School of Medicine and in 1995 they developed Proactiv Solution as a preventative skincare for acne (the Proactiv brand is now controlled by Guthy-Renker and Nestlé). In 2002 they founded Rodan + Field and in 2003 the company was purchased by Estée Lauder. In 2007, Dr. Fields and Dr. Rodan reacquired the brand and transitioned the company from department stores to multi-level marketing, where consultants are paid a commission for their own sales and for the sales of people they recruit.

Today, the company’s products are sold directly to consumers through a network of more than 200,000 independent consultants. According to Euromonitor International’s Beauty and Personal Care 2018 Edition, Rodan + Fields is the fastest-growing beauty and personal care brand in the US. Rodan + Fields is headquartered in San Francisco (www.rodanandfields.com).

The minority investment by TPG will provide Rodan + Fields with access to TPG’s business building expertise, capabilities, and resources. The company’s founders and senior leadership team will continue to be active in setting corporate strategy and managing day-to-day operations. “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,” said Diane Dietz, CEO and President of Rodan + Fields. “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.”

Following the transaction, Mr. Coulter and Paul Hackwell, TPG Capital’s sector lead for consumer investments, will join Rodan + Fields’ board of directors.

TPG was founded in 1992 and makes investments throughout North America, Europe, Asia and Australia.  Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare.  In May 2016, TPG held a final close of its latest fund, TPG Partners VII LP, with $10.5 billion in commitments. The firm has offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, Seoul, and Singapore (www.tpg.com).

Perella Weinberg was the financial advisor to Rodan + Fields on this transaction.

© 2018 Private Equity Professional | May 4, 2018

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