Lifestyle Fund II acquires Les Secrets de Loly

The Quadrivio & Pambianco non-public fairness fund invests within the beauty-care section and buys French model specialised in merchandise for curly hair.

Lifestyle Fund II enters the beauty-care section and buys the bulk stake in Les Secrets de Loly ‒ a French model specialised in merchandise for wavy, curly, coily, frizzy and afro-textured hair ‒ from Quilvest Capital Partners. The Weinberg Capital Partners and Three Hills funds are becoming a member of Quadrivio Group within the funding by minority stakes. 

Les Secrets de Loly was established in France in 2009 to an thought by Kelly Massol, who shall be considerably reinvesting within the model. The administration crew ‒ helmed by Carlota Thévenot, the present CEO ‒ can even keep in place. 

Les Secrets de Loly stands as a fifth funding for Lifestyle Fund II ‒ the Quadrivio & Pambianco automobile for investing in firms lively within the way of life, vogue, design, magnificence, and meals & wine sectors. The fund’s portfolio already contains: Twinset, the ladies’s complete look label with a female and romantic edge; Sessùn, a French attire model with a soulful arts-and-crafts id; Filippo De Laurentiis, makers of top-end knitwear; and Autry, producers of premium sneakers 

Over the final three years Les Secrets de Loly has registered annual development exceeding 40%. The model has steadily established itself as a haircare benchmark due to its premium positioning and distinctive options: it focuses on 100% pure merchandise designed to guard and improve the feel of wavy, curly, coily, frizzy and afro hair. This is a high-potential key market that addresses two out of each three ladies in France, the place the model holds clear market management. Distribution is thru the pharmacy channel, specialised retail shops and e-commerce platforms. Les Secrets de Loly additionally fosters a deeply inclusive imaginative and prescient, which has enabled it to construct a robust reference to its personal customers and to create an genuine neighborhood of ladies across the model. 

The Les Secrets de Loly acquisition by Quadrivio marks the start of a brand new strategic chapter for the haircare firm, which has a agency concentrate on worldwide enlargement and a goal of €100 million and above in turnover.

Following a interval of sturdy development in France, its roadmap traces out enlargement throughout Europe ‒ significantly in Spain and Italy ‒ and the Middle East. The fund’s crew, with confirmed expertise within the section, shall be supporting the corporate all through the subsequent part of improvement, strengthening its positioning on present markets whereas activating multi-market enlargement initiatives. The intention is to immediate large-scale development over the approaching years. 

The transaction was headed by Philippe Franchet and Massimo Rocchietti, respectively Managing Partner and Senior Investment Manager at Quadrivio Group. 

Philippe Franchet, Managing Partner at Quadrivio Group, commented: “Les Secrets de Loly shows all the attributes of a highly attractive brand: leadership within its niche, strong organic growth, profitability, and a committed management team. We’ll be supporting this business during its European expansion and in value creation throughout this new cycle.” 

“We’re excited to be part of the Les Secrets de Loly world. The company’s growth over recent years stands as just the first step in a much longer development journey, one that we will be guiding thanks also to Quadrivio Group’s consolidated experience in the beauty-care sector, which is of significant strategic importance for us. We firmly believe in the brand’s potential ‒ it is currently Sephora’s haircare bestseller ‒ and we intend to invest further in its positioning while accelerating its international rollout across Europe and beyond,” added Alessandro Binello, Group CEO at Quadrivio Group. 

For Kelly Massol, founding father of Les Secrets de Loly: “This operation marks a new phase for the brand. Following a successful structuring period with Quilvest, today we have solid foundations to accelerate internationally while also preserving our DNA.” 

Quadrivio & Pambianco was assisted by Rothschild as monetary advisor, and by the regulation workplace Jeantet for the authorized elements of the operation. Strategic consultancy was entrusted to EY Parthenon, whereas the monetary due diligence was performed by Interpath. Assistance within the authorized elements of financing the transaction was supplied to Quadrivio by Hogan Lovells. 
Les Secrets de Loly and its shareholders have been assisted by the monetary advisors Scalène Partners and Jefferies, by the regulation places of work AEF, Mayer Brown and Jeausserand-Audouard, and by Alvarez & Marsal and BCG in auditing and vendor due diligence actions. 

For Three Hills, the transaction was helmed by the Paris workplace and was carried out as a part of the Three Hills Impact decrease mid-market technique.