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Private Equity Firm Invests in Colorescience
Posted: November 19, 2007Private equity firm VMG Partners has made an equity investment in luxury mineral makeup brand, Colorescience. The partnership will bring financing and brand building power to the innovative cosmetic line. Established in 2000, Colorescience was founded by Diane Ranger, and is sold solely through physicians' practices and medical spas. Colorescience management and distribution channels will not change due to the acquisition.
"VMG Partners invests in people, brands and trends that are indisputable winners," said Robert Schult, co-founder, VMG Partners. "When we make a strategic alignment, such as with Colorescience, it is because we have done our homework and have great confidence in the company, its leadership and in the successful outcome of our business decision. Unquestionably, Diane Ranger and Colorescience are winners, and we are delighted to be working with them."
Several factors went into VMG Partners' decision to invest in Colorescience. "Mineral makeup is one of the fastest growing sectors within the cosmetics industry," said Schult. "We chose to work with Colorescience because its creator, Diane Ranger, defined the concept and the industry and has continued to pioneer product advancements. She is the one uniting ingredient between this category's past, present and future. "
Colorescience's distribution channels also impressed investors, said Schult. "Doctors' and celebrities' careers rely upon the quality and effectiveness of the treatments they promote and use," said Schult. "Colorescience's endorsement within this market is just another testament to the brand's strength and appeal."
Another partner within VMG Partners, David Baram, former COO and current a director of The Firm—a talent and brand development agency that represents celebrities—says a large part of VMG's partner selection depends on what he hears from his celebrity clientele.
"At The Firm, we depend on market research, the most recent forecasting data and consumer surveys to determine the best choices for our clients. Simultaneously, we ask our clients what products they prefer and rely on. Products our clients trust, believe in and recommend to their friends are those we actively pursue at VMG Partners," said Baram.
Upcoming efforts in the works for the Colorescience brand include conducting and releasing clinical studies on the effectiveness of its products, celebrity endorsements from The Firm's Colorescience users, and forging a partnership with the Skin Cancer Foundation.