The most successful acquisitions protect what made the brand matter in the first place: the founders.
In 2025, beauty acquisitions surged—and like in every industry, not every deal was successful.
A recent industry analysis highlights a pattern across major beauty transactions: when founders were pushed out, or their creative influence was diluted, growth followed suit. As the article put it plainly, “once the creative DNA was taken out, the momentum was gone.”
To us, this insight isn’t surprising at all. That’s why a key facet of our business model is the conviction that enduring growth comes from preserving the founder’s vision, not replacing it.
Beauty, fragrance, and personal care brands aren’t built by spreadsheets alone. They’re built by founders with vision, taste, and a deep understanding of their consumer. Strip that away, and even the most sophisticated infrastructure can lose its edge.
Our investment and acceleration process was designed to support success. For us, for founders, and for our investors.
How Our Monthly Royalty Distributions Work
As a holding company scaling brands across beauty, fragrance, personal care, and private label, our royalty distributions are structured to be paid monthly and are based on revenue1 from our portfolio of companies. We are not asking you to wait for profits. Distributions are contractually set at an annualized minimum target of 8%, with an annualized cap of 20%, and are calculated based on the amount invested.
A Founder-Friendly Structure for Brand Acceleration
During acquisitions, we buy a majority stake using a blend of cash and equity, giving founders strong incentives and the freedom to grow and contribute to something bigger. This structure means they:
- Stay invested in their own continued growth.
- Benefit from belonging to a collaborative and expanding family of brands.
- Retain meaningful upside as their business and our collective portfolio grow.
- Gain freedom to innovate as our shared infrastructure and expertise in HR, finance, manufacturing, distribution, and marketing remove the administrative load—capabilities most brands can’t and do not want to build alone.
The result is growth that can compound while preserving the essence that made consumers connect with the brand in the first place.
This is how we believe brands scale without losing what makes them fundamental.
For those interested in gaining exposure to this approach, visit our offering page to invest or to learn more.
Interested in learning more about Fundamental Brands?
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- Although all portfolio companies have revenue as a criterion for acquisition, revenues cannot be guaranteed. Therefore, meeting the minimum distribution amount cannot be guaranteed. All payments, including the minimum, are subject to the availability of revenues and distributable funds, as determined by the Company. ↩︎
