TSG Consumer invests in Huda Beauty

TSG Consumer Partners has acquired a minority stake in Huda Beauty. Financial terms of the transaction were not disclosed. Huda Beauty is a beauty brand founded by Huda Kattan, a beauty blogger. Financo acted as financial advisor to Huda Beauty, while Gibson, Dunn & Crutcher LLP was legal advisor. Moelis & Co provided financial advice to TSG and Ropes & Gray LLP acted as legal advisor.


SAN FRANCISCO & NEW YORK–(BUSINESS WIRE)–TSG Consumer Partners (“TSG”), a leading private equity firm focused exclusively on the branded consumer sector, and Huda Beauty, one of the world’s fastest-growing beauty brands, today announced that TSG has acquired a minority stake in Huda Beauty. Financial terms of the transaction were not disclosed.
Huda Kattan founded her eponymous cosmetics brand, Huda Beauty, in Dubai in 2013 with her sisters, Mona and Alya Kattan, and her husband, Christopher Goncalo. Her collection began with false eyelashes and has since expanded to include a full range of products with record-breaking launches in retail outlets including ShopHudaBeauty.com, Sephora, Sephora in JC Penney, Harrods, Selfridges, and Cult Beauty. As an entrepreneur, internationally-recognized beauty authority, Hollywood-trained makeup artist and content creator, Huda has become the #1 beauty influencer with a social media following of over 27 million followers, and was named one of Forbes’ “Top 2017 Influencers in Beauty” and TIME’s “Most Influential People On The Internet”.
Huda, founder and CEO of Huda Beauty said, “TSG understands exactly who we are as a brand and values our authenticity and close relationship with our customer. Huda Beauty has evolved from our beginnings as a nimble startup, and now enjoys sustained, exponential growth and we trust TSG to help us build on this momentum by expanding product assortments and distribution in the most thoughtful way. Our mission remains the same, and that is to make beauty something that everyone feels they are a part of—I want to tickle everyone’s beauty bone!”
Mona Kattan, a partner in Huda Beauty said, “I believe I speak for myself, Huda, Alya and Chris, when I say that we are confident we found an amazing partner in TSG, given their compelling impact in the consumer and beauty industry. Upon meeting them, it was very clear that TSG believed in our mission and was the most prepared to take us into our next chapter. We are truly excited to be working with them and feel that above all else they understand and value what makes a brand special – our team.”
“We feel incredibly honored to partner with Huda Kattan and her team,” said Colin Welch, Managing Director at TSG. “We’ve invested in the beauty sector for over ten years and have seen a marked shift in the way consumers engage with brands. Consumers today want an authentic connection with a founder and to feel as though they are part of something much larger than themselves. Huda’s unprecedented social community enables them to do just that.”
Hadley Mullin, Senior Managing Director at TSG, added, “Huda Beauty’s unrivaled digital reach, global influence and best-in-class product offering help women worldwide look and feel their best every day. We are thrilled to join forces with Huda Beauty, which is poised for significant global expansion, fueled by Huda’s passion and commitment to her ever-expanding consumer community.”
Huda added, “I am also grateful that this new partnership enables me to start something I am excited about – the creation of HB Investments, a fund that will facilitate new beauty and wellness businesses. Our program will be called Huda Beauty Angels and we will lend seed money, mentoring and advice to aspiring entrepreneurs, because we know that, without a plan, money does not guarantee a successful business.”
Financo acted as financial advisor to Huda Beauty and Gibson, Dunn & Crutcher LLP acted as legal advisor. Moelis & Company acted as financial advisor to TSG and Ropes & Gray LLP acted as legal advisor.
About TSG Consumer Partners
TSG Consumer Partners, LLC is a leading investment firm with approximately $5 billion of assets under management, focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household, apparel & accessories, and e-commerce sectors. Representative past and present partner companies include Duckhorn Wine Company, vitaminwater, thinkThin, popchips, Muscle Milk, Yard House, Stumptown, Pabst, Planet Fitness, REVOLVE, Backcountry, Smashbox Cosmetics, Pureology, Sexy Hair, e.l.f. Cosmetics and IT Cosmetics. For more information, please visit www.tsgconsumer.com.