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
Castanea Partners has made a minority investment in Tatcha, a beauty and lifestyle company that sells a line of skincare products including serums, moisturizers, mists, exfoliants, and cleansers.
“Tatcha stands out for its high-quality products and authentic brand heritage,” said Steve Berg, a Managing Partner at Castanea. “We look forward to working with Vicky and the team to support the company’s growth.”
Castanea Partners invests from $15 million to $150 million in companies that operate in branded consumer products and services, including companies in lifestyle apparel and accessories, beauty and personal care, food and beverage, and outdoor and leisure. The firm is currently investing from its $600 million fourth fund that invests in companies with enterprise values up to $250 million. Castanea is headquartered near Boston in Newton, MA (
