Starting from scratch with $500, how did this American fashion jewelry brand get investment from a well-known private equity fund?
Recently, 65 Equity Partners, an investment company under Singapore's sovereign investment fund Temasek, announced that it has completed a significant minority investment in American fashion jewelry brand Kendra Scott. American private equity investment company HPS Investment Partners and Canadian securities investment company Belzberg & Co jointly participated in the investment with 65 Equity Partners.
After the transaction is completed, brand founder Kendra Scott will continue to hold a majority stake in the company, and according to the terms of this transaction, her shareholding ratio will increase compared to before the transaction.
In December 2016, Kendra Scott sold 20% of her equity to American private equity fund Berkshire Partners.
01
Started from scratch with $500
Kendra Scott moved from a small town in Wisconsin to Austin, the capital of Texas, at the age of 19 and began her own entrepreneurial journey. She first opened a hat shop, Hat Box, in a shopping mall, specializing in designing comfortable and beautiful hats for patients with hair loss after chemotherapy. In 2002, out of her love for natural gemstones, Kendra Scott created her first jewelry series in her bedroom at a cost of $500, which was sold through Toyota Sequoia, a jewelry store in Austin, and her eponymous brand was born.
In 2002, after successfully signing a contract with Toyota Sequoia, she took her products to three more jewelry stores that afternoon. In the last store, she sold her own samples for $1,200. With this money, she could make more products. When she got home, Kendra Scott excitedly announced: "The Kendra Scott jewelry brand has officially set sail!"
Kendra Scott is famous for its unique color matching, design and innovative materials, and has a large number of fans from royal families, celebrities and socialites around the world. Famous actresses such as Sofia Vergara and Mindy Kaling have worn accessories from the brand, and the late American fashion designer Oscar de la Renta also brought the brand's jewelry to the catwalk.
Kendra Scott's fashion jewelry business includes necklaces, earrings, rings, men's jewelry, etc. Most of these jewelry accessories are natural stones with customizable shapes. Customers can also choose their favorite colors, shapes, and materials to customize jewelry in stores and on the official website, with an average price of less than $100. In addition, Kendra Scott has also expanded its Fine Jewelry line. These products are mainly made of 14K gold/white gold, 18K gold-plated, and sterling silver materials, with an average price of more than $100.
02
Opened over 1,000 fashion boutiques in 22 years
Currently, the Kendra Scott brand is sold through high-end department stores such as Nordstrom, Bloomingdale’s and Dillard’s, as well as more than 850 fashion boutiques, in addition to official e-commerce websites and a network of more than 130 offline stores in the United States (including pop-up stores).
According to Tom Nolan, the brand's CEO, customer traffic across all channels continues to increase, with annual sales maintaining double-digit growth.
The official press release also stated that based on this latest investment, the Kendra Scott brand will continue to add new stores, collaborate with culturally relevant partners, and expand into key categories in the coming years.
Matt Doherty, Principal at 65 Equity Partners, said: “Kendra Scott’s authentic values and iconic designs have attracted an exceptional leadership team and passionate customer base. We are excited to support the brand as it continues to expand across channels, geographies and categories in the future.”
About 65 Equity Partners
65 Equity Partners is a wholly-owned subsidiary of Singapore's sovereign investment fund Temasek established in October 2021, focusing on equity and structured equity investments. It hopes to start in Singapore and gradually expand its business in Southeast Asia, Europe and the United States.
65 Equity Partners is a global investment firm dedicated to supporting founders on their growth journey. Headquartered in Singapore, it manages US$3.3 billion in funds and has offices in London and San Francisco. 65 Equity Partners' existing consumer product portfolio includes Malaysia's used car trading platform Carsome, Singapore's cashback e-commerce platform ShopBack, and Singapore's immersive experience creation company NEON.
Source: Luxe.Co