authentic brands group private equity

Authentic Brands Group, the company said. Under the ownership of BlackRock, the world’s largest asset manager, the New York-based company will expand geographically and through “better use of technology,” according to Bourbonnais. The value of the deal wasn’t disclosed. The Legalization Trend That Has Nothing to Do With Weed. LTPC is backed by BlackRock, Inc., the world’s leading investment firm, which manages more than $6.8 trillion on behalf of investors worldwide, including over $170 billion across alternative asset classes. New York, New York 10001 As bricks-and-mortar retailers face their biggest crisis yet, with a record number collapsing into bankruptcy even before the Covid-19 pandemic, one man is embracing them with both arms. Family Office Investor McNally Capital Seeks $150 Million for New Fund, China’s President Xi Jinping Personally Scuttled Jack Ma’s Ant IPO, LA Fitness Lines Up $300 Million Loan From Main Street Lending Program, 3i Group First-Half Profit Up After Portfolio Companies Defy Pandemic Hit. Salter said he’s been building brands his whole adult life, starting out at Wayler windsurfers and then Kemper and Ride snowboards. His four adult sons have followed him into the business and all work at Authentic, including his son, Corey, who serves as chief operating officer. His backers, BlackRock Inc. and General Atlantic LLC alongside Leonard Green & Partners LP, recently put an additional $600 million into the business and Salter now says he generally won’t look at deals under $1 billion. “At some point, those wholesale channels get bottled up. “I don’t need to think about the next private equity guy for the next 10 years.” The ABG founder said he believes the company’s earnings could double over the next three years as it seeks acquisitions globally. General Atlantic has invested in over 260 companies and manages approximately $20 billion in assets across five sectors: Retail & Consumer, Business Services, Financial Services, Healthcare, and Internet & Technology. 0. The expansion into traditional retail is part of a strategy to compile a portfolio of brands that appeals to shoppers of every income level and predilection. ABG's current brand portfolio includes more than 23 world-renowned brands such as Elvis Presley, Marilyn Monroe, Muhammad Ali, Shaquille O'Neal, Juicy Couture, Judith Leiber, Jones New York, Hickey Freeman, Spyder and Tapout. The deal, led by BlackRock’s Colm Lanigan, was “fairly complex,” he said, partly due to its mix of shareholders. List building is only available for Platinum subscribers. Early seeds of his more recent moves can be traced to his previous life as head of Hilco Consumer Capital LLC where he picked up some of the pieces of the last downturn -– the Great Recession -- teaming up with Gordon Brothers Group LLC to buy the brands for household names Linens ‘n’ Things Inc. and Polaroid. Salter’s vision for the 200-year-old Brooks Brothers has elements of his previous playbooks, like potential brand collaborations. He said the fund also seeks control — or shared control —of companies than can grow organically and externally. Get the full list », You’re viewing 5 of 17 executive team members. This acquisition brings Authentic Brands’ total annual retail sales to more than $9.3 billion, the company said in a news release. O'Neal, who was inducted into basketball’s Hall of Fame in 2016, was the first “living legend” to join its celebrity and entertainment roster and also become a shareholder, ABG said when announcing General Atlantic’s investment. The brands company doesn’t own stores and the production risk is with the licensee, he explained. “We’re going to be very careful obviously with Brooks Brothers,” he said. What having storefronts does for Authentic Brands is give them an access point to consumers.” For the malls, Authentic can help with e-commerce, he said. PitchBook’s non-financial metrics help you gauge a company’s traction and growth using web presence and social reach. For Brooks Brothers, New York City-based Authentic has teamed with Simon Properties. The success of Aeropostale made them more amenable to looking at other troubled names, especially as more physical stores closed. But even at that size, there are a lot of them. Lion’s current and past portfolio includes investments in prominent brands including Jimmy Choo, John Varvatos, AllSaints, Kettle Foods, and Perricone MD. LTPC’s team of 19 professionals is based in New York and London and invests globally with a focus on North America and Western Europe. Anthony Scaramucci Is (Once Again) Throwing a Hedge Fund Party. “And by creating this portfolio effect, they’re able to manage that risk better than either a brand owner or a single retailer would be able to.”, U.S. Bankruptcy tracker: Retail’s worst year ever as virus bites. Copyright 2020 Dow Jones & Company, Inc. All Rights Reserved. Some private equity firms look for brands that could excel with more investment in strategy, marketing and development. Salter likes that LTPC is willing to remain an investor for more than a decade, allowing him to focus solely on growing the business. In 2016, Lion Capital said it was buying a minority stake in ABG, a deal that would leave Leonard Green and Salter as majority owners of the brand development company. Every day, new opportunities emerge around M&A and we help professionals of all types comb through transactions, investors, and corporate acquirers via an easy-to-use web database that is accessible to anyone. www.authenticbrandsgroup.com. “We have good momentum in the market.”, [II Deep Dive: Private Equity Drove Two Canadians Crazy. Tesla’s Musk Says He May Have Covid-19, Calls Tests ‘Extremely Bogus’, World’s Biggest Free-Trade Deal Set to Be Signed This Weekend, Nio Stock Surge Tops 1,000% as Tesla’s China Nemesis Gains Speed, Covid Superspreader Risk Is Linked to Restaurants, Gyms, Hotels, Stocks Slump on Lockdown Angst Amid Stimulus Limbo: Markets Wrap. BlackRock is aiming to raise $10 billion to $12 billion for its LTPC fund, which is designed to hold companies for as long as forever while charging lower fees to investors. The latest acquisition spree has placed Authentic Brands at the center of the meltdown that’s wracked American retail. To explore Authentic Brands Group‘s full profile, request access. New York, NY . ABG — whose brands include Marilyn Monroe, Muhammad Ali, and Elvis Presley — has been backed by private equity for years. The firm did not add any debt to AGB’s balance sheet, or refinance the existing borrowings of the private equity-backed company, according to Bourbonnais. https://www.wsj.com/articles/private-equity-backed-authentic-brands-buys-sportswear-brand-volcom-11554220800. PitchBook’s comparison feature gives you a side-by-side look at key metrics for similar companies. “We found all of this in ABG,” said Bourbonnais, who in May told Institutional Investor that LTPC was nearing its first investment. As its first deal, ABG is critical as the firm continues fundraising globally for the new private equity pool. Meanwhile, Forever 21 plans to introduce Elvis and Marilyn Monroe themed merchandise this holiday season and is performing “beyond my wildest expectations,” he said. To order presentation-ready copies for distribution to your colleagues, clients or customers visit https://www.djreprints.com. United States . Starting with $250 million a decade ago, Salter manages a portfolio with retail revenue estimated at almost $15 billion ahead of the pandemic. A previous version of this story corrected the name of one of Salter’s backers to BlackRock Inc. Have a confidential tip for our reporters? … We Are Brand OwnersCuratorsGuardians. ABG's mission is to acquire, manage and build long-term value of consumer brands through partnering with best-in-class licensees and retailers. More retailers have filed for bankruptcy than any year on record, Note: Includes Ch. The investment from BlackRock values ABG at around $4.5 billion, including existing debt, Salter said in a phone interview. Forever 21 Inc., Lucky Brand Dungarees LLC and . Subscribe . Private Equity Drove Two Canadians Crazy. M&A research that takes seconds (not all afternoon), Better understand your customers and prospects. The company manages and maintains the long-term value of a portfolio of brands through global partnerships and distribution programs and owns a portfolio of lifestyle, sports and celebrity and entertainment brands. The deal includes $625 million from the LTPC fund and $250 million of co-investment, giving BlackRock shared control of ABG with founder James Salter and management, Bourbonnais said in a phone interview. Get the full list », You’re viewing 5 of 18 subsidiaries. Portell said Authentic’s expansion from brands to physical retail makes sense, notwithstanding a shift to more online shopping. ANDREW CRAWFORD | Global Head of Retail & Consumer, General Atlantic, ANDREW FERRER | Managing Director, General Atlantic, JONATHAN SEIFFER | Partner, Leonard Green & Partners, USAMA CORTAS | Partner, Leonard Green & Partners, JAMIE SALTER | Founder, Chairman & CEO, ABG, COLM LANIGAN | Managing Director, BlackRock LTPC, DAG SKATTUM | Managing Director, BlackRock LTPC, © 2018 Authentic Brands Group LLC.