Inverleith LLP is a sector specialised, lower mid-cap private equity fund that invests into consumer brand businesses that operate within the high growth categories of health & wellness, lifestyle, drinks, luxury and heritage brands, in companies headquartered in the UK and Europe.

Inverleith acquires majority or strategic minority stakes in businesses through its Fund. The Fund focuses on businesses with revenues of between £5m – £30m and a target investment level of between £5m – £15m.

Inverleith targets businesses which have a product USP or strong defendable market position, have the opportunity to become an internationally scalable brand and where the founders / management are receptive to a collaborative investment approach with Inverleith.

We believe a number of macro trends are creating a highly attractive and sustainable investment environment within our target market.

Importance of mental and physical wellbeing:

Especially amongst millennials, there is an increasing awareness of the importance of mental and physical wellbeing. With worldwide obesity having more than doubled since 1980, an increasingly ageing population and a new generation born into a health conscious way of life, the health and wellness industry will continue to grow over the next decade.

The rise of direct to consumer:

E-commerce is predicted to experience double-digit growth over the next 5 years. We continue to see brands emerging that reject the traditional model of retail and wholesale in favour of an exclusive online model of sales and marketing. The rise of direct to consumer through e-commerce has reduced barriers to success for small companies and has enabled brands to capture more of the value chain or provide a more competitive price positioning.

Rejection of mainstream brands in favour of those with authenticity:

Consumers, especially millennials, are rejecting mainstream brands in favour of those which they perceive to have provenance, heritage and authenticity. Craft and artisanal brands have captured the consumer imagination, with consumers trusting and prepared to pay more for such brands. The craft movement has been seen across a wide variety of categories from coffee to spirits to chocolate.

Innovation in large corporations through niche brand acquisitions:

We’re seeing large corporations spending over 15% of turnover on investment into marketing, but as little as 2 – 3% on research and development. Small brands can innovate faster, free from the constraints of corporate processes, are prepared to take greater risks and experiment with multiple ideas and concepts. Large corporations have moved to let these dynamic brands lead the innovation front and look to integrate that innovation once proven in the market through acquisition.

Inverleith’s point of difference is the ability to add both professional investment and strong operational expertise into businesses. With many of the team having worked operationally in consumer brand companies across both the FMCG and premium / luxury brand sectors, we know (and have lived!) the challenges faced by companies and brands, understand the strategic levers to drive growth and have the experience and global networks to support businesses in the areas where they need to focus.

Inverleith works closely and collaboratively with companies to build a joint 3 – 5 year business plan and to scale the company for successful exit. We’re hands-on in our approach, taking an active involvement in our investment companies, not only through Board positions, but also by working closely with the executive team senior management to drive initiatives and projects forward where support is required.