Austin’s Kendra Scott Welcomes New Investor Amid Growth Plans
Austin, Texas — One of Austin’s most beloved brands, Kendra Scott Design Inc., has recently welcomed a new investor, taking a significant step forward in its business journey. On September 13, 65 Equity Partners, a private equity firm based in Singapore and owned by Temasek Holdings, announced its minority investment in this jewelry and lifestyle company.
The company did not disclose the exact amount of the investment. However, this deal marks a notable shift as two of Kendra Scott’s previous private equity backers, Berkshire Partners and Norwest Venture Partners, have fully redeemed their preferred stock investments. Berkshire Partners first invested in Kendra Scott in 2016, valuing the business at over $1 billion at the time. Norwest had made an undisclosed minority investment in the company back in 2014.
Founder’s Continued Leadership
Kendra Scott, the founder who started her venture in 2002, remains the majority stakeholder of the company. Following this latest investment, she has even increased her shareholding. Scott is noted for being on the ABJ’s 2024 Power Players list, recognizing her influence in the entrepreneurial landscape.
In terms of advisory support, Scott received guidance from Goodwin Procter LLP during this investment deal. The company also worked with several firms including Piper Sandler & Co., Goldman Sachs & Co. LLC, and Latham & Watkins LLP to ensure a smooth transaction.
A Vision for Growth
Expressing her enthusiasm about the new investment, Kendra Scott stated, “I have never been more excited about our business, and 65 Equity Partners will allow our brand to grow while staying true to our mission.” She emphasized the alignment between her company’s goals and the international investment firm’s focus on supporting entrepreneurial growth.
With this injection of capital, Kendra Scott Design plans to expand its retail presence, introduce new product categories, and forge partnerships with culturally relevant collaborators. The company’s CEO, Tom Nolan, described this investment as “a pivotal moment in our journey,” highlighting their success across all business channels, including increased traffic and double-digit revenue growth.
A Journey from a Spare Bedroom
Kendra Scott’s journey to success has been nothing short of remarkable. The entrepreneur launched her brand just three months after the birth of her first son, starting with only $500 from her bank account. On her first selling day, she carried her infant son along as she pitched her jewelry to local retailers.
After selling all her samples, Scott reinvested the proceeds into creating more designs, allowing her business to flourish right from her home. As demand grew, she transitioned from a home-based operation to a thriving business. Today, Kendra Scott’s jewelry is available in major retailers like Target, Nordstrom, and Bloomingdale’s, as well as in hundreds of specialty boutiques. The company now boasts over 2,600 employees and is headquartered off North Lamar in Austin.
Future Aspirations
As Kendra Scott Design embarks on this new chapter with 65 Equity Partners, the company is poised for continued growth and expansion. With a commitment to broadening their market reach while maintaining a deep connection to their brand values, Scott and her team are optimistic about what lies ahead.
In the coming years, Kendra Scott is expected to further cement its reputation as a globally recognized lifestyle brand, all while honoring its roots in the vibrant city of Austin.
