Recently, it was reported that people familiar with the matter said that, as part of a debt restructuring, private equity firm TPG Capital has relinquished most of its stake in the US-based makeup brand Anastasia Beverly Hills (ABH), leaving it with a current ownership of only around 6%.
According to the report, in 2018 TPG acquired approximately 38% of ABH from the brand’s founder, Anastasia Soare. Part of the transaction was funded through debt taken on by ABH, while the remainder came from preferred shares subscribed to by TPG. However, ABH’s performance subsequently deteriorated sharply. The latest reduction in its shareholding means that most of TPG’s US$600 million investment has effectively been wiped out.
Sources also said that Anastasia Soare is exploring a number of options, including injecting around US$225 million into the company as part of the debt restructuring. The discussions also involve lenders increasing their equity stakes and providing additional loans, though no deal has yet been finalised.
Previously, while creditors were advancing debt restructuring talks, ABH had been operating under extended forbearance periods and defaulted on a loan in August.
In a statement, an ABH spokesperson said the brand is “taking steps to align its capital structure with the underlying strength of the business and its solid operating performance,” adding that the company is working with lenders to address upcoming debt maturities.
Public information shows that Anastasia Soare launched her eponymous brand in the United States in 1997. In 2000, ABH introduced its first product line, adhering to a commitment not to conduct animal testing in product formulation, testing or development. The brand rose to global prominence on the strength of its brow-shaping products, earning Soare the title of the “Queen of Brows.” She later built a beauty empire with a broad product portfolio distributed worldwide through retailers such as Sephora and Macy’s. In 2020, ABH opened its first pop-up store in China in Shanghai; in 2022, the brand entered Sephora China, formally launching its omnichannel presence in the Chinese market.
