L Catterton has cashed out of its investment in Rhone.
On Wednesday, the Connecticut-based menswear brand revealed that it closed a series D round of financing through a special purpose vehicle (SPV) fund, with management and a select group of investors — including former NFL players Tim Tebow and Steve Young — buying back the minority stake L Catterton had purchased in 2017.
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Although the series D closed in July, Rhone just revealed the deal now and said it reflects its move to chart a more independent course. The amount of the investment wasn’t revealed, but half of the funds came from seven owners of professional sports teams in the NBA, NFL, MLB, MLS and EPL, the company said. In addition to Tebow and Young, other investors included Blackstone executive David Blitzer, former hedge fund manager Gabe Plotkin and Larry Miller Group. Prior investors have included Justin Tuck and Troy Aikman.
Family members of chief executive officer Nate Checketts are also part of the investment team, he said in a Facebook post, including his father David Checketts. His brother Ben and brother-in-law Carras Holmstead are also part of the team.
The investment, believed to be around 30 percent, is being used to continue to fuel Rhone’s growth. As reported, the brand will launch womenswear next spring and has opened 11 stores over the last 12 months.
“We are forever grateful for the partnership and support of L Catterton through the years and during this transaction,” said Checketts. “Closing this financing marks an exciting chapter for Rhone and we are excited about the investors we have added who have enabled us to have full control over the direction of our brand’s future. The infusion of capital also positions us to amplify our retail footprint and invest in key areas that drive our brand’s growth and further our mission of building a community focused on a balanced life around both physical and mental fitness.”
Rhone was founded in 2014 and has around $100 million in sales.
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