North Castle Looking Beautiful

 North Castle Partners and True Beauty Capital, founded by Richard Gersten, have partnered to acquire and provide operating support to companies in the beauty and personal care sectors.

Mr. Gersten was previously with North Castle from 1999 to 2007, and later, from 2007 to 2011 was with Catterton Partners. For the last 13 years, he has worked exclusively with companies operating in the beauty and personal care sectors.

Prior to founding True Beauty last month, Mr. Gersten was a partner at Tengram Capital where he was a member of its investment committee and served on the board of directors of Tengram’s eight beauty investments, including This Works, a developer of aromatherapeutic beauty products which was sold in April 2019; Laura Geller Beauty, a color cosmetics brand which was sold in December 2019; Deva Curl, a haircare brand which was sold in June 2017; and NEST Fragrances, a designer and manufacturer of fragrances and personal care products which was sold in November 2017.

Mr. Gersten and True Beauty have entered into a consulting agreement with Tengram to continue to provide advisory services to the beauty sector portfolio companies that it still owns including Cos Bar, Lime Crime, Algenist and ReVive Skincare.

In the new partnership, Mr. Gersten has agreed to work exclusively with North Castle on investments in the beauty and personal care sectors that require capital in excess of $10 million. Mr. Gersten will work with North Castle to source new investment opportunities and he will also provide advisory services post-acquisition. As part of the agreement, beauty, wellness and personal care brands requiring investments of less than $10 million can be independently pursued by True Beauty.

“I have been fortunate to have had successful partnerships with so many founders and CEOs in the beauty industry,” said Mr. Gersten. “With the combination of True Beauty and my strategic partnership with North Castle, I will be able to leverage my experience and relationships to do what I truly love — focus exclusively on the beauty and personal care categories across all investment types and stages. Rejoining the North Castle team in this new strategic partnership role makes this new venture even more rewarding.”

“We are excited to professionally rekindle a friendship that has spanned more than twenty years,” said Chip Baird, founder and CEO of North Castle. “We have enormous respect for Rich’s values, business judgment and track record. He understands the wide range of strategic and operational capabilities North Castle adds as we partner with management teams to build world-class companies. We welcome him back to the North Castle family and look forward to partnering with him in our new strategic relationship.”

Greenwich, Connecticut-based North Castle makes control investments in consumer-driven product and service companies located in North America. Sectors of specific interest include beauty and personal care; consumer health; fitness, recreation and sports; home and leisure; and nutrition.

In April 2019, North Castle closed its seventh fund, North Castle Partners VII LP, at its hard cap of $400 million. The new fund was oversubscribed and was raised in less than five months.

Private Equity Professional | April 15, 2020