Carlyle, a renowned global private equity firm managing a staggering $425 billion in investor funds, has been a key player in various industries such as aerospace equipment, wind turbines, and airport terminals. However, their foray into the world of clean beauty took an unexpected turn this year, marking one of their significant setbacks.
The Investment in Beautycounter
Three years ago, in May 2021, Carlyle decided to invest approximately $600 million in a unique skin care company known as Beautycounter. The company, led by the charismatic founder Gregg Renfrew, had garnered attention for its mission to create cosmetic products free from harmful chemicals. Operating through a direct selling model akin to multilevel marketing, Beautycounter offered products like antioxidant creams priced at $87.
The Partnership
Upon acquiring a controlling stake in Beautycounter, Carlyle and Ms. Renfrew shared ambitious goals to elevate the company’s annual sales from $400 million to $1 billion and eventually take it public. Gregg Renfrew, who received around $50 million for selling a portion of her stake, remained at the helm as the CEO post-acquisition. The partnership between Ms. Renfrew, Carlyle, and Jay Sammons, who spearheaded Carlyle’s consumer products business, seemed promising and aligned towards mutual success.
Enthusiastic Outlook
Expressing her excitement post-acquisition, Ms. Renfrew likened the moment to winning the lottery or getting engaged. In a recorded virtual meeting with Carlyle’s Mr. Sammons and Beautycounter’s sales team, she emphasized her enthusiasm for the partnership and the shared vision for the company’s future growth.
| Founder | Company | Investment Amount |
|---|---|---|
| Gregg Renfrew | Beautycounter | $600 million |
