TPG Suffers $600 Million Loss on Anastasia Beverly Hills Investment

TPG Inc. took a significant hit on its investment in Anastasia Beverly Hills, largely wiping out its $600 million stake in the cosmetics company. The private equity firm exited most of its stake in the company as part of a debt restructuring, according to people familiar with the matter. The deal, which was struck in 2018, saw TPG purchase about 38% of the beauty company from its founders. The investment was financed with a combination of debt taken on by Anastasia and preferred shares bought by TPG. However, the debt restructuring has resulted in TPG losing a substantial portion of its investment, with the company's stake now valued at near zero. The financial details of the deal are as follows: TPG invested $600 million in Anastasia Beverly Hills in 2018, with the company's valuation at the time estimated to be around $1.5 billion. The investment was made through a combination of debt and equity, with TPG taking on a significant amount of debt to finance the deal. The company's founders, including Anastasia Soare, retained a minority stake in the company. The market impact of TPG's decision to exit its stake in Anastasia Beverly Hills is significant. The company's valuation has taken a hit, with its estimated worth now below $1 billion. The deal also raises questions about the viability of private equity investments in the cosmetics industry, where valuations have been driven up in recent years by the rise of social media influencers and e-commerce platforms. Anastasia Beverly Hills is a leading player in the cosmetics industry, known for its high-end makeup products and strong brand recognition. The company has been successful in leveraging social media platforms to promote its products and build a loyal customer base. However, the company's valuation has been driven up in recent years, making it a challenging investment for private equity firms. The future outlook for Anastasia Beverly Hills is uncertain, with the company's valuation now below its pre-investment level. However, the company's strong brand recognition and loyal customer base suggest that it may still have a bright future ahead of it. The deal also raises questions about the role of private equity firms in the cosmetics industry, and whether they will continue to invest in the sector. In a statement, a spokesperson for TPG said that the company had made a strategic decision to exit its stake in Anastasia Beverly Hills as part of a broader debt restructuring effort. The spokesperson declined to comment further on the deal.