Broad Sky Partners has made an investment in Fair Harbor, a sustainable lifestyle brand. No financial terms were disclosed. Raymond James served as financial advisor to Broad Sky while PricewaterhouseCoopers Corporate Finance LLC served as financial advisor to Fair Harbor.
New York – March 23, 2022 – Fair Harbor, a sustainable lifestyle brand, today announced it has secured an investment from Broad Sky Partners, a private equity firm that partners with leading middle market business services and consumer companies. The investment marks Fair Harbor’s first institutional capital. Terms of the transaction were not disclosed.
Fair Harbor was founded in 2014 by siblings Jake Danehy, CEO, and Caroline Danehy, Chief Creative Officer. The business, inspired by their childhood beach community on Fire Island, grew out of a concern for global waterways and a desire to preserve the magic of the shorelines for future generations. Fair Harbor works with sources from around the world to gather post-consumer recycled plastic bottles and transform them into high-quality, sustainable performance fabric for their ultrasoft beachwear.
Fair Harbor plans to use the investment from Broad Sky Partners to fuel its expansion into new product lines, retail channels and sustainability initiatives. As a digitally native brand to date, the vast majority of the company’s sales have been direct-to-consumer; however, Fair Harbor has a growing list of wholesale partners and will launch at retail this year.
“After building Fair Harbor for the last seven years, we’re thrilled to have the support of Broad Sky Partners to help us continue our mission and grow our vision for the brand,” said Jake and Caroline Danehy. “We immediately felt a natural connection with the Broad Sky team. They have incredible experience in the consumer space, along with dedicated operating resources. We are confident that the combination of these will help us take Fair Harbor to the next level and work towards our ambition to become the next great American heritage brand.”
In the last two years, Fair Harbor has grown significantly. The company has been recognized on The Lead’s Foremost 50 List and honored with their Standout Award. In 2021, the Danehys earned the prestigious EY Entrepreneur of the Year Award and the Reuters Responsible Business Award. INC. Magazine’s INC. 5000 List ranked Fair Harbor the 26th Fastest-Growing Private Company in America and the #2 Fastest-Growing Private Company in Retail for 2020.
“Jake and Caroline are exceptionally talented, purpose-driven entrepreneurs. Against the backdrop of increased consumer preference for sustainable products, they’ve led Fair Harbor to achieve remarkable success to date,” said Jonathan Marlow, a Partner at Broad Sky Partners who leads the firm’s investments within the Consumer sector. “As sector-focused, thematic investors, we see significant opportunities to invest in the intersection of sustainable and direct-to-consumer business models and are following the impact the shift to sustainability is having in consumer packaging and supply chains.”
Roberta Bowman, an ESG expert and Operating Partner at Broad Sky Partners, added, “We share Fair Harbor’s commitment to sustainability and are pleased to support Jake and Caroline’s vision to build a significant brand and business.”
Raymond James served as financial advisor and Morrison Cohen LLP served as legal advisor to Broad Sky. PricewaterhouseCoopers Corporate Finance LLC served as financial advisor and Orrick Herrington & Sutcliffe LLP acted as legal advisor to Fair Harbor.
About Fair Harbor
Fair Harbor makes the world’s most comfortable and versatile sustainable beachwear. Inspired by their childhood spent in Fire Island, NY, siblings Caroline and Jake Danehy launched their family brand in 2014. Their continued passion and persistence have evolved Fair Harbor into the fastest growing sustainable beachwear company in the United States. The purpose-driven label began with the simple goal of reducing plastic waste in the water and at the beach. Since then, Fair Harbor has transformed more than 26 million recycled plastic water bottles into stylish beachwear. The brand also innovated the men’s swimwear space by inventing BreezeKnit fabric, an interior liner for their shorts, to solve the chafing caused by traditional mesh. More than 35,000 five-star reviews from loyal customers attest to the comfort of Fair Harbor clothing. The family business will introduce women’s performance swimwear in April 2022 as part of its evolution into a full lifestyle brand.