By Gary Symons
TLL Editor in Chief
The global brand owner Authentic Brands Group announced it received a $500M investment from its current investor General Atlantic.
The global growth equity firm has now invested roughly $2 billion in Authentic. General Atlantic first invested in Authentic Brands in 2017, and while it cashed out on its initial investment, the company has reinvested in Authentic multiple times.
“General Atlantic is proud to be a long-term partner to Jamie and the Authentic Brands Group team. Over the past six years of our work together, Authentic has significantly accelerated its growth by capitalizing on meaningful M&A opportunities, expanding into key markets and building a deeply experienced management team,” said Andrew Crawford, General Atlantic’s Managing Director and Global Head of Consumer. “Looking ahead, we believe Authentic is positioned for continued diversification across categories, license partners, geographies and distribution channels, with immense whitespace in digital and e-commerce particularly. We are thrilled to continue collaborating with Authentic to further scale its differentiated portfolio of brands.”
The investment is important for two reasons, and will certainly allow Authentic to have a much greater impact in the global licensing industry.
The first reason is to cash up the company, which intends to go public in the near future.
Authentic Brands filed for an initial public offering in 2021, before withdrawing its application last year at the beginning of a listing drought linked to the global economic downturn.
Instead, Authentic turned to the private market for financing, completing the General Atlantic deal at a reported valuation of $20 billion. The company’s valuation last year was pegged at $12.7 billion in its most recent funding round, according to a 2022 filing with the US Securities and Exchange Commission. The company says it could go public in the next 24 months.
The second reason is to help fund the continued acquisitions that has driven Authentic’s growth. The company, under the leadership of Canadian billionaire Jamie Salter, has become one of the most aggressive acquisitors of global brands in apparel and entertainment.
Since General Atlantic’s initial investment in 2017, Authentic has executed more than two dozen brand acquisitions, and has diversified its platform through new verticals, including media, outdoor, events and experiences, and most recently, studios.
“General Atlantic’s increased investment in Authentic is a testament to the strength of our proprietary brand platform, business model and team,” said Salter. “It takes an innovative investment approach and shares our vision for building brand value for the long term. We are proud to be part of General Atlantic’s selective portfolio of first-movers and established companies and look forward to continuing to partner with them to evolve and scale our model worldwide.”
Update: Authentic Brands Group Signs Agreement to Acquire Boardriders
Since its founding in 2010, Authentic has swiftly grown into one of the world’s leading brand platforms. In 2022, the company continued to accelerate its growth through a strategic partnership with David Beckham, acquiring the Ted Baker fashion brand, and the purchase of Reebok, it’s largest acquisition to date. So far in 2023 the company has acquired the luxury brand Vince, the outdoors lifestyle and boot brand Hunter, and is in the midst of acquiring Boardriders.
The company also unveiled Authentic Studios, a full-service production studio that comprises four distinct labels, including Shaquille O’Neal’s Jersey Legends, David Beckham’s Studio 99, Sports Illustrated Studios and Authentic Productions.
Today, Authentic’s has a 40-plus well-known brands that generate more than $25B in global annual retail sales, and boasts an expansive retail footprint in 150 countries, including 10,800-plus freestanding stores and shops-in-shops, and 380,000 points of sale.
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