An intimate, family-owned skincare brand is eyeing a global expansion.
Osea Malibu, the Venice-based skincare brand that touts the benefits of seaweed, announced a strategic growth investment from private equity firm General Atlantic. The financial terms of the deal were not disclosed.
Osea was founded in 1996 by the mother and daughter duo, Jenefer and Melissa Palmer. Jenefer spent years developing Osea’s skincare and body care product line. When Jenefer moved to Orcas Island in Washington in the ’80s, she began engaging with wellness practices like shiatsu (a Japanese form of massage) and became a wellness spa director. Once the spa sold, Jenefer focused entirely on the skincare line and officially launched Osea at Fred Segal, the now-defunct Los Angeles fashion retail store, on Melrose Avenue.
The company quickly grew, garnering partnerships with the spa at Four Seasons Maui, stocking its products at nationwide retailers like Ulta Beauty Inc. and opening a skincare spa on Abbot Kinney Road in Venice.
Osea is ready to grow beyond those confines, thanks in part to the General Atlantic investment, the company statement noted. The consumer-facing skincare brand remained fully self-funded until 2020, when it received an undisclosed investment from growth equity fund CAVU Consumer Partners.
“We’re confident that this partnership (with General Atlantic) will create exciting opportunities for innovation and global expansion, while remaining true to our roots and shared values,” said Melissa, co-founder and chief executive of Osea, in a statement.
Melissa and Jenefer will maintain a “significant” stake in the company, according to the announcement. They will also continue to lead and be involved in the company’s operations.
Outlook for global expansion
Andrew Ferrer, managing director at General Atlantic, and Ben Sherman, principal at General Atlantic, will join the Osea board of directors as part of the deal.
“Osea is a rare brand that combines three decades of family values, consumer trust and category leadership,” Ferrer said in a statement. “We are honored to partner with Melissa, Jenefer, and the Osea team to help carry the family’s legacy forward and to support their vision for clean beauty innovation and global expansion.”
The move is strategic for General Atlantic as well. The private equity behemoth makes investments spanning a wide array of industries, including artificial intelligence, energy and enterprise-grade applications. According to PitchBook, the firm’s portfolio is 20% made up of business-to-consumer companies like Osea. In February, the company purchased the popular fragrance house Kayali from cosmetics company Huda Beauty. It has also co-led an $825 million investment into Carlsbad-based coastal athleisure retailer Vuori.
General Atlantic’s global head of the consumer sector Andrew Crawford said the company’s strategy largely focuses on consumer brands with a younger customer base ranging between 20- and 30-year-olds and has a value proposition of shaking up legacy brands.
“The consumer has never been smarter,” he said. “They can do research while shopping … and fully understand all the ingredients that go into the product. In many categories, the customer wants to know that it was made in a fair and honest way throughout the supply chain.”
