Private equity firm 65 Equity Partners on Friday said it has completed “a significant minority investment” in accessories brand Kendra Scott Design, Inc. A Kendra Scott spokesperson declined to comment about the size of the investment, referring to the press release issued by the companies. 65 Equity Partners didn’t immediately respond to a question about the dollar amount of its investment.
Founder Kendra Scott herself not only retains a majority stake in the company, but that has also grown under the terms of the deal, per the release. HPS Investment Partners and Belzberg & Co co-invested with 65 Equity Partners in the transaction, which “fully redeems the preferred stock investments held by Berkshire Partners and Norwest Venture Partners,” the companies said.
The new investment will “support the brand's continued expansion across channels, geographies, and categories,” according to a statement from 65 Equity Partners Principal Matt Doherty. The brand will open new stores, collaborate “with culturally relevant partners” and expand “into crucial categories in the upcoming years,” per the release.
In a statement, Kendra Scott CEO Tom Nolan said the 65 Equity Partners infusion “represents a pivotal moment in our journey.” Nolan, previously president of the company, took over from Scott as chief executive over three years ago; she remains executive chairwoman of the board.
"We continue to see success across all channels with increased traffic, double-digit revenue growth, and outperforming industry standards,” Nolan said. “We are thrilled about the opportunities this partnership brings and are confident in the brand's continued expansion and growth.”
Since Nolan took the helm, Kendra Scott has announced a slew of initiatives that expand the brand’s reach, including partnering with Target, entering the fragrance and timepiece categories, collaborating with LoveShackFancy and offering lab-grown diamonds.
On Friday, Scott said the new partnership with 65 Equity Partners will allow for continued growth “while staying true to our mission.”
"The international investment firm's focus on supporting entrepreneurs in their growth journey complements our efforts as we build a globally recognized lifestyle brand,” she said.
