NudeStix, the range of minimalist makeup pencils, has nabbed an investor.
The one-and-a-half-year-old beauty brand, founded by Jenny Frankel and her two teenage daughters Ally and Taylor, has received a minority equity investment from the private equity firm Alliance Consumer Growth. Earlier this year, ACG invested in Tata’s Natural Alchemy, the makers of Tata Harper Skincare. ACG is believed to have acquired approximately a 30 percent stake in NudeStix, which industry sources estimate will reach $10 million in retail sales next year.
Frankel created NudeStix after observing her daughters’ lack of engagement with beauty brands during a two-year non-compete following her departure from Cover FX, which was acquired by Catterton Partners in 2011.
“They don’t believe in perfection and don’t aspire to flawlessness,” said Frankel, who prior to cofounding Cover FX was a product developer at MAC Cosmetics. What her daughters were interested in, she said, was something that was “easy, effortless, fast and portable.”
The Toronto-based brand takes a less-is-more approach to makeup and to its shade palette, which favors neutrals. The products’ directions for use are equally as streamlined. In most cases, it’s draw and smudge.
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In May 2014, the brand launched at Space NK, where it was sold exclusively for five months before rolling out to Urban Outfitters, Sephora and Bluemercury. It is sold in 150 stores, and plans to double its door count in 2016, said Frankel.
She said ACG’s involvement allows NudeStix to increase brand awareness and trial, grow internationally and elevate Ally and Taylor as influencers. The pair is the face of the brand and manage its social media platform.
Frankel said NudeStix decided to partner with ACG after the private equity firm made its intentions very transparent and showed an interest in a family business where two teenage girls are the authentic voices of the brand.
“We have a very clear vision,” said Frankel. “We are disruptive, but that’s a good thing.”