World Entrepreneurs Day 2024: How Private Equity Partnerships Built the Brands We Know and Love

All great businesses start with an idea. However, translating and scaling that idea into a successful enterprise is easier said than done. That’s where private equity comes in.

Private equity does more than provide the capital businesses need to grow. Private investors also provide industry-expertise and mentorship to entrepreneurs, helping them identify and overcome obstacles, develop innovative solutions, and navigate the complexities of launching and expanding a business.

As we mark World Entrepreneurs Day, it's essential to recognize the vital role that private equity plays in supporting entrepreneurs. Partnerships between private investors and entrepreneurs have fueled some of the most innovative business ventures we’ve seen in the last few years. Let’s take a look:

Reese Witherspoon, Founder of Hello Sunshine: In 2016, actress and producer Reese Witherspoon launched Hello Sunshine, a women-centric media company focused on telling female-driven stories across film, TV, and digital channels. Since its launch, the company has produced a number of hit shows, including Big Little Lies, The Morning Show, and Little Fires Everywhere. In 2021, Hello Sunshine announced a majority investment from a new company led by entertainment executives Kevin Mayer and Tom Staggs and backed by private equity capital from Blackstone. The partnership allowed Witherspoon to retain control over the day-to-day operations of the company, maintain significant equity in the business, and join the company’s new board, ultimately allowing Hello Sunshine to remain independent while accelerating its growth.

Jessica Alba, Founder of The Honest Company: In 2011, actress Jessica Alba founded The Honest Company, a brand focused on clean, ethical consumer goods. In 2018, the company received $200 million in funding from private equity firm L Catterton. This investment was used to strengthen the brand’s supply chain and expand globally, bringing their Honest Beauty line to seven European countries. With the support of private equity, Alba took The Honest Company public in 2021 at a valuation of $1.4 billion.

Zach McLeroy, Co-Founder of Zaxby's: Zaxby's, the beloved fast-casual chain known for its chicken fingers, wings, and signature sauces, received a private equity investment from Goldman Sachs in 2020. The investment enabled McLeroy to expand the Athens-based restaurant chain nationally. Today, Zaxby’s has over 900 restaurants across 19 states. Private equity also helped Zaxby’s reach significant milestones, drive new restaurant expansions, and launch new employee benefits including an expanded 401(k) program, equity stakes, and childcare support.

Sara Blakely, Founder of Spanx: Sara Blakely founded iconic womenswear brand SPANX in 2000, supported by $5,000 in her own savings. Twelve years later, the brand was valued at $1 billion and bringing in $250 million in annual sales. In 2021, Spanx secured a majority investment from Blackstone at a valuation of $1.2 billion. As part of the deal, Blakely maintained significant equity in the business, continued to oversee the brand’s day-to-day operations, and stepped into the role of CEO of the newly appointed all-female board of directors. The private equity partnership helped SPANX expand globally by boosting its online presence and e-commerce sales.

Even the most creative, innovative entrepreneurs need support. Private equity provides financial backing and strategic guidance, helping businesses scale and succeed. On World Entrepreneurs Day, we’re proud to celebrate the success of private equity-backed brands that we know and love.