Case studies - finance for business
Company: Pout
Launched in 2000, Pout has developed a high profile cosmetic range that embodies femininity and fun. The brand’s USP is its innovative packing, fun attitude, accessible price and ‘from London’ positioning for its customers. A flagship store was opened in Covent Garden in June 2001 followed by concessions at Harvey Nichols stores in the UK. In January 2003, Pout launched in the US stores Henri Bender, New York and Louis of Boston.
In June 2003 Pout secured £322,000 of the £1m needed to continue their expansion from LBA. Sales trebled in 12 months, and Pout now operates in 450 outlets worldwide, including US, Canada, Australia and the Middle East.
Emily Cohen, co-founder and CEO of Pout stated, “the investors who have joined the company have added much more than capital to the value of the business and have been a pleasure to have on board.”
A private investor from LBA who invested £200,000 commented: “LBA offers its investor members a consistently high quality of investment opportunity. They receive over 400 applications per annum and only present the top 40 to the membership saving us an enormous amount in time spent reviewing. We have been very pleased with our investment in Pout, which has grown more or less in line with expectations, and on top of this, some of the deals they are currently discussing would significantly boost the value of the business leading to a possible exit for our investment within the next 12 to 18 months.”
In 2007, Pout investors from LBA were offered an opportunity to exit their investment by Catterton Partners, a US-based private equity fund, for up to five times their initial investment.