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- ✨ The Glow Up Economy: PE’s Investments in Beauty
✨ The Glow Up Economy: PE’s Investments in Beauty
Private equity’s evolving investment strategy in beauty
PE Playbook: Beauty Brands
State of Play
Private equity has been a dominant force behind beauty M&A over the last two decades—and the momentum isn’t slowing down. According to DC Advisory, private equity accounted for over 60% of all beauty deals since 2022. That pace has continued into 2024/2025, with recent investments including:
- General Atlantic in KAYALI (2025) – fragrance products
- L Catterton in Stripes (2024) – menopause-focused skincare
- L Catterton in Kiko Milano (2024) – affordable makeup and skincare
Private equity has long been active in beauty—but what’s changed is the strategy. What began as a retail or healthcare-adjacent playbook has evolved into a diversified set of bets across DTC brands and global markets.
Let’s break down why beauty remains an attractive sector—and how the PE playbook has changed over time.
Investment Thesis
📈 1. A massive and growing market
According to McKinsey (and yes, you know it's a hot market when McKinsey is giving out free research), the global beauty industry is valued at ~$450 billion, with North America making up ~$100 billion of that total.
Despite its size, beauty keeps growing: ~9% YoY growth in 2023 in North America, with projected growth of 6%+ annually over the next few years.
And the growth isn’t concentrated in one product category—it’s coming from everywhere: skincare, fragrance, makeup, personal care. In other words, PE investors have a wide menu to pick from.
Source: McKinsey
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