Private equity firm invests in hair-and-body care firm
GREENWICH — Private equity firm L Catterton has invested $150 million in Function of Beauty, a maker of customizable hair and body care products that has long been on the radar of Connecticut investors.
L Catterton’s “strategic minority investment” will accelerate the Manhattanbased Function of Beauty’s product development and support its worldwide expansion and manufacturing capabilities, according to company officials. At the same time, CircleUp and GGV reinvested in Function of Beauty.
“Function of Beauty has cracked the code of mass customization and is poised to redefine the beauty landscape,” Avik Pramanik, a partner of L Catterton’s Flagship Buyout Fund, said in a statement announcing the deal this week. “Together, we look forward to deploying an even more aggressive growth marketing strategy in domestic and international markets while fostering breakthrough product innovation in hair care, skin care and more.”
Since its founding in 2015, Function of Beauty has focused on “bringing the benefits of customization to a broad audience, not only a privileged few,” the company said in a statement.
In July, Function of Beauty launched customizable body lotion and body wash products. It followed in October with customizable cleanser, serum and moisturizer offerings for the skin.
The company employs more than 400 workers.
“We are excited to partner with a proven investor in some of the world’s leading consumer brands to realize the many growth opportunities ahead,” Function of Beauty’s founders Zahir Dossa, Joshua Maciejewski and Hien Kaplan said in a statement. “International expansion beyond our existing 45 markets will continue to be a key priority, along with the pursuit of new avenues for growth within the U.S. as we introduce more customers to the benefits of customization.”
Function of Beauty, which had operated from Stamford before heading to the startup accelerator Y
Combinator in 2016, has long attracted the attention of Connecticut investment firms. Officials at Bullish, which has offices in Greenwich, said they invested in the “mid-six-figure range” into Function of Beauty when its annual sales were less than $1 million.
“The recent investment news validates what we identified in the function of beauty team and premise a few years ago,” Bullish managing partner Michael Duda said. “The rampant acceleration of new technology combined with increasing shifts in consumer behavior allows great founders like Zahir, John and Hien to take market share from slow-moving, legacy conglomerates now more than ever.”
At the same time, the investment in Function of Beauty highlights a busy period for L Catterton. Last week, it closed on the $800 million sale of hot sauce maker Cholula to McCormick, which produces seasonings, spices and condiments. It had bought Cholula for an undisclosed amount about two years ago.
As the owner of brands such as French’s yellow mustard, McCormick has seen demand grow this year as the coronavirus crisis has led to more customers cooking at home. McCormick also owns Frank’s RedHot hot sauce.
L Catterton describes itself as the world’s largest consumerfocused private equity firm. Other current and past investments in consumer brands include support for The Honest Co., Elemis, Bliss, Il Makiage, Frederic Fekkai, Nutrafol and Tula.
Headquartered at 599 W. Putnam Ave., the firm manages $20 billion of equity capital and employs a team of nearly 200 workers across 17 offices around the world.