Jewellery brand Kendra Scott gets minority investment from 65 Equity Partners
65 Equity Partners has completed a significant minority investment in the accessories brand, Kendra Scott Design, Inc. The transaction also increased founder Kendra Scott’s majority stake in the company. HPS Investment Partners and Belzberg & Co participated in the investment. The deal redeems the preferred stock investments previously held by Berkshire Partners and Norwest Venture Partners.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Minority investment
Investors: 65 Equity Partners, HPS Investment Partners, Belzberg & Co
The new investment will be used to support Kendra Scott’s expansion across various channels, geographic regions, and product categories. According to Matt Doherty, Principal at 65 Equity Partners, the brand plans to open more stores, collaborate with relevant partners, and expand into new categories over the coming years.
Kendra Scott herself expressed excitement about the partnership, stating that it would allow for further growth while maintaining the brand's mission. She highlighted that the investment firm’s focus on supporting entrepreneurs aligns well with the company’s efforts to build a globally recognised lifestyle brand.
CEO Tom Nolan, who took over from Scott as CEO over three years ago, called the investment a pivotal moment for the brand. Nolan noted that the company has seen increased traffic, double-digit revenue growth, and performance that exceeds industry standards.
Since Nolan's leadership, Kendra Scott has initiated several moves to expand the brand’s market reach, including partnerships with Target and collaborations with LoveShackFancy. The company has also ventured into new product categories, such as fragrances and lab-grown diamonds.
65 Equity Partners, a global investment firm backed by Temasek, focuses on supporting founder-led businesses across various sectors. Its involvement in this transaction is seen as a move to drive further growth for the Kendra Scott brand.
