Private Equity Fuels Growth in Activewear and Skincare: Adanola and OneSkin Secure Key Investments

Table of Contents

1. Adanola's Strategic Partnership with Story3 Capital Partners
2. OneSkin's Breakthrough Investment from Prelude Growth Partners
3. The Evolving Landscape of Private Equity in Consumer Goods
4. The Future Trajectory: Innovation, Digital Expansion, and Brand Building
5. What kind of investment did Adanola receive, and what does it mean for the brand?
6. Who is Story3 Capital Partners, and what is their focus?
7. What is OneSkin, and what makes its recent investment unique?
8. What are OneSkin's current financial projections?
9. Who is Prelude Growth Partners, and what is their track record in the beauty industry?
10. How do these investments reflect broader trends in private equity?
11. What are the main benefits for consumer brands partnering with private equity firms?
12. Will Adanola and OneSkin expand into physical retail?
13. How does a "non-dilutive" investment work for existing shareholders?

Key Highlights:

• Adanola, a prominent U.K.-based womenswear brand, has secured a significant minority investment from Story3 Capital Partners to accelerate its global expansion, focusing on digital channels and selective retail growth.
• Skincare innovator OneSkin received a $20 million investment from Prelude Growth Partners, a move that bought out a former investor without diluting existing shareholder equity, underscoring confidence in its rapid revenue growth.
• These investments highlight a broader trend of private equity firms targeting high-growth, digitally-native brands in the activewear and beauty sectors, leveraging strategic capital for market leadership and innovation.

Introduction:

The dynamic interplay between innovative consumer brands and strategic private equity investment continues to reshape the retail landscape. In two distinct yet equally compelling developments, the activewear and premium skincare markets have recently witnessed significant capital injections designed to fuel ambitious growth trajectories. U.K.-based womenswear brand Adanola has secured a substantial minority investment from Los Angeles-based Story3 Capital Partners, signaling a strategic push to solidify its global leadership in activewear. Concurrently, OneSkin, a pioneering name in scientific skincare, has closed a $20 million investment round led by growth equity firm Prelude Growth Partners. These transactions are more than mere financial exchanges; they represent a strategic alignment between capital providers and visionary entrepreneurs, aimed at scaling operations, expanding market reach, and cementing brand dominance in highly competitive sectors.

Adanola's Strategic Partnership with Story3 Capital Partners

Adanola, a brand that has rapidly ascended to prominence in the activewear segment, recently announced a significant minority investment from Story3 Capital Partners. This partnership is poised to be a pivotal moment for the U.K.-based womenswear brand, enabling it to accelerate its expansion strategy and fortify its position as a global leader. Adanola has carved out a distinct niche for itself through a combination of stylish design, functional performance, and a strong connection with its consumer base, primarily through digital channels. The investment from Story3 Capital Partners, a firm renowned for its expertise in consumer brands and retail, underscores Adanola's impressive growth trajectory and its potential for further market penetration.

Story3 Capital Partners' investment philosophy often centers on identifying brands with strong digital footprints and a clear path to scaling. Adanola's commitment to prioritizing digital channels aligns perfectly with this strategy. In an era where e-commerce continues to be a primary driver of consumer interaction and sales, Adanola's existing digital prowess provides a robust foundation for leveraging the new capital. The brand's focus on online engagement, direct-to-consumer sales, and data-driven marketing has allowed it to build a loyal customer base and respond swiftly to market trends. This digital-first approach is not merely a sales channel but a core component of its brand identity and customer relationship management.

Beyond its digital focus, Adanola also harbors long-term ambitions for expanding its physical retail presence. While the immediate strategy emphasizes digital dominance, the brand plans for selective growth in traditional retail, culminating in the establishment of its own brand stores. This omnichannel approach is increasingly vital for modern consumer brands, allowing them to offer diverse touchpoints for customers, enhance brand visibility, and create immersive shopping experiences. Story3 Capital Partners' experience in navigating the complexities of retail expansion, from supply chain optimization to store design and location strategy, will be invaluable as Adanola embarks on this next phase of growth. The firm's operational expertise can help Adanola mitigate risks associated with physical expansion, ensuring that new retail ventures complement rather than cannibalize its successful digital operations.

The activewear market, globally, has experienced a sustained boom, driven by increasing health consciousness, the blurring lines between athletic wear and everyday fashion, and the pervasive influence of social media. Brands like Adanola are benefiting from these macro trends, but sustained success requires more than just riding the wave; it demands strategic investment in product innovation, marketing, and distribution. With Story3 Capital Partners' backing, Adanola is well-positioned to invest in advanced material research, expand its product lines to cater to a broader range of activities and preferences, and enhance its supply chain efficiency to meet growing demand. This partnership is not just about capital; it’s about strategic guidance and operational support that can transform a rapidly growing brand into a global powerhouse.

OneSkin's Breakthrough Investment from Prelude Growth Partners

In a parallel development within the burgeoning beauty and wellness sector, OneSkin, an innovative skincare company, has secured a $20 million investment from growth equity firm Prelude Growth Partners. This funding round is particularly noteworthy because it was structured to buy out a former investor, critically, without diluting any other shareholders' equity. This non-dilutive nature of the investment for existing shareholders speaks volumes about Prelude Growth Partners' confidence in OneSkin's current valuation and future growth prospects. It also reflects a strategic decision to consolidate ownership and provide a clean slate for future growth, while respecting the value created by early investors and founders.

OneSkin's CEO, Carolina Reis Oliveira, highlighted that Prelude Growth Partners proactively approached the company with a detailed and compelling vision for a potential partnership. This proactive engagement, rather than a reactive response to a fundraising pitch, suggests a deep understanding of OneSkin's market potential and a clear articulation of how Prelude's expertise could contribute to its success. Such an approach indicates a highly strategic investor who sees long-term value and is prepared to offer more than just capital—they offer a roadmap for accelerated development.

According to sources close to the company, OneSkin is projected to achieve impressive revenue figures, on track to generate between $40 million and $50 million this year. This robust revenue performance is a testament to the efficacy of its products, its strong brand appeal, and its effective market penetration. OneSkin differentiates itself through a scientific, research-backed approach to skincare, focusing on longevity and cellular health rather than just superficial aesthetics. This scientific underpinning resonates strongly with a growing segment of consumers who are increasingly sophisticated and demand evidence-based solutions for their skincare concerns.

Prelude Growth Partners' investment in OneSkin is consistent with its broader portfolio strategy, which includes successful beauty brands such as Sol de Janeiro, Summer Fridays, and Tower 28. This track record in the beauty sector provides OneSkin with access to a wealth of industry knowledge, operational best practices, and a network of experienced professionals. Prelude's expertise extends across areas like brand building, marketing, distribution, and supply chain management, all of which are critical for scaling a beauty brand in a competitive market. The firm's success with its other beauty investments demonstrates its ability to identify, nurture, and grow brands that capture consumer imagination and deliver tangible results.

The skincare market, much like activewear, is experiencing significant innovation and growth, driven by advancements in biotechnology, increased consumer awareness of ingredients, and a shift towards holistic wellness. OneSkin's focus on "longevity" and "rejuvenation at the cellular level" positions it at the forefront of this trend. The investment from Prelude will likely enable OneSkin to further invest in research and development, expand its product offerings, and scale its marketing efforts to reach a wider audience. This could involve developing new formulations, entering new geographic markets, or enhancing its direct-to-consumer platform. The non-dilutive nature of the investment for existing shareholders is a strong signal of confidence, allowing OneSkin to maintain its entrepreneurial spirit while benefiting from substantial financial and strategic backing.

The Evolving Landscape of Private Equity in Consumer Goods

The investments in Adanola and OneSkin are illustrative of a broader trend within the private equity landscape: a strategic pivot towards high-growth, digitally-native consumer brands. This shift is driven by several factors, including the relatively lower capital expenditure required for digital-first businesses compared to traditional brick-and-mortar retail, the ability to scale rapidly through e-commerce, and the potential for strong brand loyalty cultivated through direct consumer engagement. Private equity firms are increasingly recognizing that these brands, often founded by entrepreneurs with deep understanding of their niche markets, offer compelling opportunities for outsized returns.

Historically, private equity was often associated with leveraged buyouts of mature, established companies. While that remains a significant part of the industry, there's been a noticeable expansion into growth equity, where firms provide capital to rapidly expanding companies in exchange for a minority stake, often without taking on significant debt. This approach allows the original founders and management teams to retain control and continue executing their vision, while benefiting from the financial resources and strategic guidance of the private equity partner. Both the Adanola and OneSkin deals fall squarely into this growth equity model, highlighting a collaborative rather than an acquisitive approach to investment.

For consumer brands, partnering with private equity can provide several critical advantages beyond just capital. These include:

• Operational Expertise: Many private equity firms employ operating partners or have extensive networks of industry experts who can provide hands-on support in areas like supply chain management, marketing, human resources, and technology infrastructure. This institutional knowledge can be invaluable for scaling companies that may lack the internal resources or experience in these specialized areas.
• Strategic Guidance: Private equity partners often bring a disciplined, data-driven approach to strategic planning. They can help companies refine their business models, identify new market opportunities, and optimize their go-to-market strategies. This external perspective can be crucial for avoiding common pitfalls associated with rapid growth.
• Access to Networks: Private equity firms have vast networks of contacts across various industries, including suppliers, distributors, retailers, and other potential partners. This network can open doors to new collaborations, facilitate market entry, and provide access to talent that would otherwise be difficult to acquire.
• Credibility and Future Fundraising: A partnership with a reputable private equity firm can significantly enhance a brand's credibility in the market, making it easier to attract future investment, secure favorable terms with suppliers, and recruit top talent. It signals to the market that the company has undergone rigorous due diligence and possesses strong fundamentals.

However, the partnership is not without its challenges. Brands must ensure that the private equity firm's vision aligns with their own, particularly regarding brand ethos and long-term objectives. The pressure for rapid growth and profitability can sometimes conflict with a brand's original mission or product development cycles. Therefore, selecting the right partner, one that understands the nuances of the consumer market and respects the brand's unique identity, is paramount. Both Adanola and OneSkin appear to have found partners in Story3 Capital Partners and Prelude Growth Partners, respectively, who are not just capital providers but strategic enablers, poised to support their distinct growth ambitions.

The activewear and beauty industries, in particular, are ripe for this type of investment. Both sectors are characterized by strong consumer demand, high margins for premium products, and significant opportunities for brand differentiation through design, innovation, and effective marketing. The rise of social media and influencer marketing has also created new avenues for brands to reach consumers directly, bypassing traditional retail gatekeepers and building deeply engaged communities. This direct-to-consumer (DTC) model, which both Adanola and OneSkin embody, offers greater control over branding, customer data, and pricing, making them attractive targets for private equity firms looking for efficient growth engines.

The Future Trajectory: Innovation, Digital Expansion, and Brand Building

The investments in Adanola and OneSkin are not isolated incidents but rather indicators of a broader strategic direction for consumer brands and their financial backers. For Adanola, the partnership with Story3 Capital Partners promises a multi-faceted approach to expansion. While digital channels will remain a cornerstone, the selective growth of retail presence, including proprietary brand stores, signifies a mature understanding of omnichannel retail. This approach acknowledges that while e-commerce offers unparalleled reach and efficiency, physical stores provide crucial experiential touchpoints, fostering deeper brand loyalty and offering a tangible connection with products. The future for Adanola will likely involve continued innovation in activewear design, incorporating sustainable materials and advanced performance technologies, alongside a globally optimized supply chain to meet increasing demand. The focus on expanding its product range beyond core womenswear into adjacent categories like accessories or menswear could also be a natural progression, leveraging its established brand equity.

OneSkin's trajectory, bolstered by Prelude Growth Partners' $20 million infusion, is equally compelling. The non-dilutive nature of the investment for existing shareholders empowers the company to maintain its entrepreneurial spirit while significantly scaling its scientific research and product development. OneSkin's commitment to a cellular-level approach to skincare positions it at the cutting edge of the beauty industry, appealing to a discerning consumer base that values efficacy and scientific validation. The capital will likely be deployed to deepen its scientific research, potentially leading to new patented technologies and product formulations. Furthermore, expanding its marketing reach to educate a broader audience about its unique scientific proposition will be critical. Given Prelude Growth Partners' success with other beauty brands, there's a strong likelihood of strategic marketing campaigns, potentially leveraging influencer partnerships and targeted digital advertising to amplify OneSkin's message and expand its market share. Global expansion, particularly into scientifically-minded markets, could also be a key objective.

Both cases underscore the importance of strong brand identity and a clear value proposition. Adanola has cultivated a distinct aesthetic and community around active living, while OneSkin stands out with its rigorous scientific foundation and focus on longevity. Private equity firms are not merely investing in financial statements; they are investing in the intangible assets of brand equity, customer loyalty, and intellectual property. The ability of these brands to maintain their authentic voice and innovate effectively will be crucial for sustained success post-investment. The strategic guidance from their respective private equity partners will be instrumental in balancing rapid growth with the preservation of brand integrity and product quality.

The broader implications for the consumer goods sector are significant. These investments signal a continued appetite for innovative, digitally-savvy brands that can demonstrate strong growth potential and a clear pathway to profitability. It also highlights the increasing specialization within private equity, with firms like Story3 and Prelude developing deep expertise in specific consumer segments. This specialization allows them to offer more tailored strategic support, beyond just capital, leading to more successful partnerships and ultimately, more robust and resilient consumer brands. As consumer preferences continue to evolve, driven by trends in health, sustainability, and personalization, private equity's role in nurturing and scaling brands that meet these demands will only become more pronounced.

FAQ:

What kind of investment did Adanola receive, and what does it mean for the brand?

Adanola received a significant minority investment from Story3 Capital Partners. This means Story3 Capital Partners acquired a substantial, but not controlling, stake in the company. For Adanola, this investment is intended to fuel its global expansion, strengthen its position in the activewear market, and support its strategic growth, particularly through digital channels and selective retail expansion, including future brand stores. It provides financial capital and strategic expertise to accelerate its development.

Who is Story3 Capital Partners, and what is their focus?

Story3 Capital Partners is a Los Angeles-based private equity firm that focuses on investing in consumer brands, particularly those with strong digital footprints and significant growth potential. They are known for providing strategic capital and operational support to help brands scale and achieve market leadership. Their investment in Adanola aligns with their expertise in the consumer and retail sectors.

What is OneSkin, and what makes its recent investment unique?

OneSkin is a skincare company known for its scientific, research-backed approach to beauty, focusing on longevity and cellular health. Its recent $20 million investment from Prelude Growth Partners is unique because it was structured to buy out a former investor without diluting any other existing shareholders' equity. This indicates a strong belief in OneSkin's valuation and growth potential, allowing existing owners to retain their proportional ownership while bringing in new capital and strategic partnership.

What are OneSkin's current financial projections?

According to a source close to the company, OneSkin is projected to generate between $40 million and $50 million in revenue this year, indicating rapid growth and strong market acceptance of its products.

Who is Prelude Growth Partners, and what is their track record in the beauty industry?

Prelude Growth Partners is a growth equity firm with a strong focus on the beauty and wellness sector. They have a successful track record of investing in and growing prominent beauty brands. Their portfolio includes well-known names such as Sol de Janeiro, Summer Fridays, and Tower 28, demonstrating their expertise in identifying and scaling successful consumer brands in this market.

How do these investments reflect broader trends in private equity?

These investments reflect a growing trend in private equity towards supporting high-growth, digitally-native consumer brands. Private equity firms are increasingly looking beyond traditional leveraged buyouts to provide growth equity to companies with strong e-commerce foundations, loyal customer bases, and clear potential for rapid scalability. This approach offers capital and strategic guidance while often allowing founders to retain significant control, fostering a more collaborative partnership model.

What are the main benefits for consumer brands partnering with private equity firms?

Partnering with private equity firms can offer several benefits beyond just capital, including operational expertise (e.g., in supply chain, marketing, technology), strategic guidance for market expansion and business model refinement, access to extensive industry networks (suppliers, distributors, talent), and enhanced credibility in the market, which can facilitate future fundraising and partnerships.

Will Adanola and OneSkin expand into physical retail?

Adanola has long-term plans for selectively growing its retail presence, including the establishment of its own brand stores, while continuing to prioritize digital channels. OneSkin's primary focus with the new investment is likely on deepening scientific research, expanding product offerings, and scaling marketing, though physical retail expansion could be a future consideration as part of broader market penetration strategies.

How does a "non-dilutive" investment work for existing shareholders?

A non-dilutive investment, in this context, means that the new capital infusion primarily facilitated the buyout of a previous investor's stake, rather than issuing new shares that would decrease the percentage ownership of existing shareholders. This allows the company to bring in new capital and a new strategic partner without reducing the proportional ownership of the founders and other existing shareholders, which is highly favorable for them.