(Bloomberg) – Mousse Partners, the family office for one of the world’s greatest fortunes, is redesigning one of its biggest bets.
The family investment firm behind luxury brand Chanel has sold most of its stake in Ulta Beauty Inc., an investment that has been held for at least 14 years and is generating a return of more than 1,700%.
Since the end of March, the company, which manages the assets of Alain and Gerard Wertheimer, has sold stakes in the cosmetics retailer valued at around $ 480 million, according to Bloomberg. The New York-based family office increased its stake in rival beauty counter earlier this month and was part of a funding round for fast-paced casual restaurant chain Cava.
Mousse Partners is one of the largest and most discreet family offices in the world. It has been run for more than two decades by Charles Heilbronn, the half-brother of Alain and Gerard, who are credited with the same share of the London-based luxury empire built on Perfume No. 5, the little black dress and the genius of Designer Karl Lagerfeld.
The public filings are a rare glimpse of an investment firm that manages a portion of nearly $ 90 billion in assets. Mousse invests in private equity, real estate and credit, often in the form of venture capital. It has been supporting the communication platform MessageBird, the catering company Butler Hospitality and the fitness company Tonal since the beginning of 2020. It also bought an interest in Nature’s Fynd, a food startup that produces a protein developed from a volcanic microbe found in Yellowstone National Park.
The last investment in beauty retailers was made when Carlyle Group Inc. acquired a majority stake in the skin care and cosmetics brand. The company, which sells primarily through the internet rather than physical locations, was valued at $ 1 billion.
Mousse still controls an interest in Ulta Beauty worth approximately $ 150 million. It reduced stake when the shares traded near a record. The shares of the Bolingbrook, Illinois-based company have risen more than 150% since mid-March 2020.
A spokeswoman for Ulta Beauty declined to comment, while Heilbronn did not respond to a request for comment via LinkedIn.
Read more: Secretive Brother carries out side bets for Chanel Empire
Mousse employs more than three dozen people in Manhattan, Hong Kong and Beijing. The company’s most recent additions include former investment banking analysts from JPMorgan Chase & Co. and Lazard. Suzi Kwon Cohen joined as Chief Investment Officer in 2016 after heading North America private equity for Singapore’s sovereign wealth fund.
From the beginning, Heilbronn has helped place bets on other skin care and cosmetics companies like Coty Inc. while also getting holdings in hospitality, furniture and pharmaceutical companies.
The family office doesn’t reveal how much money is available, but Chanel has paid out more than $ 2 billion in dividends over the past five years, according to the Bloomberg Billionaires Index.
Heilbronn has been the director of Ulta Beauty for more than two decades. The family invested in the beauty retailer before going public in 2007.
– With support from Kim Bhasin and Gerald Porter Jr.