by This article was updated on March 27, 2024 at 5:00 am EST.
LONDON – Rosie Huntington-Whiteley is working with a new firm called The Equity Studio, founded by investor Anna Sweeting with the aim of offering funding and strategic advice to entrepreneur-focused and consumer-focused businesses.
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Equity Studio is launching a lead investment vehicle with sole backing from Sweeting and Huntington-Whiteley. The partners plan to put their muscle behind brands in the US, UK and Europe with revenues between $3 million and $20 million.
Sweeting said the ideal investment targets would be in the early and mid-stages of their development.
As part of the new venture, Sweeting has also established an advisory board of international business leaders, strategists and entrepreneurs, including Huntington-Whiteley, who will put their diverse skills to work advising founders and help businesses scale.
The Equity Studio plans to invest in businesses across beauty, wellness and lifestyle, with a focus on value creation and enabling entrepreneurs. Sweeting and Huntington-Whiteley plan to reveal their first investment soon.
In an interview, Sweeting said The Equity Studio’s aim is to closely align with founding entrepreneurs and to scale brands that have a “proven track record of revenue generation, a clear path to profitability, and growth potential.”
She also wants to build “connectivity and trust” with founders.
“The landscape is changing dramatically, and these entrepreneurs need capital, but they also need [advice] from people navigating the landscape in real time. We are able to help them improve their current strengths, and continue to drive market share. It will be a magical combination where we can invest, and also lead them on the journey,” said Sweeting.
She believes there is a gap to fill in the current landscape by backing successful, growing consumer brands that other investors may overlook.
The macro environment, the cost of living crisis and a more cautious consumer have made fundraising even more difficult for these brands, who need money to scale.
Sweeting argues that founders need investors who believe in their operating principles, and who can have a “specialized and supportive ecosystem” to keep up with all the change in the market.
Her approach is out of the ordinary. Private equity firms can sometimes force companies to grow too fast, load them with debt, and then unload them at a loss if the strategy doesn’t work. Sweet is taking another tack. “We are patient, creative and flexible.”
She and Huntington-Whiteley said they are looking for founders who are “influential, determined, people who can seamlessly integrate marketing with cultural cachet, and create entertainment. Those are the brands we’re following,” she said.
Ideal investment targets should also have a strong product offering and superpowers, be it in research and development, scientific or supply chain expertise, or proprietary data.
Sweeting has spent her career helping brands build and scale. She co-founded the investment company Vaultier7, and has backed brands including Gisou, 111Skin, Axel Arigato, Vestiaire Collective and DeMellier, among others.
She is one of a handful of female professional investors who have founded and run their own investment funds and hold more than 15 board seats across their global portfolio.
Sweeting describes The Equity Studio as an “evolution” of her investment vision and desire to support entrepreneurial businesses. She will continue to manage Vaultier7’s investments alongside those on The Equity Studio platform.
Asked about her choice of Huntington-Whiteley as an investment partner, Sweeting said the two women have known each other for some time, and share a passion for building brands.
“We come from very different perspectives, but they are very complementary. I’m always looking for brands that have cultural warmth and are grounded in community and content. Rosie is at the forefront of building culture and brands with founders who are always looking at how to grow their communities and how to be part of the cultural conversation,” she said.
Sweeting described Huntington-Whiteley as “an exceptional entrepreneur, with longevity over so many things. She literally puts value into everything she does. She is a cultural catalyst and what I admire most is her discerning ability to select and partner with talent and brands.”
Huntington-Whiteley is a British institution. She has been working with Marks & Spencer for over ten years, collaborating on makeup and lingerie collections for the retailer. She has appeared in campaigns, and on the runway, for Burberry, and is also known far beyond British shores as a former Victoria’s Secret Angel and actress.
In 2018 she launched the beauty and wellness platform Rose Inc. and three years later he followed up with a collection of eco-conscious color cosmetics of the same name.
About the Rose Inc. makeup line. she partnered with Amyris, which filed for Chapter 11 bankruptcy in Delaware court in August. Her brand was eventually sold at auction to Hong Kong investor AA Investments.
Huntington-Whiteley has nearly 20 million followers on Instagram, and her recent partnerships have been with brands including Waterdrop, Anine Bing, Gia Borghini and Hunza G.
Huntington-Whiteley described Sweeting as “a league of its own in identifying and supporting iconic brands early, both capital-wise and as a high-impact strategic partner. We couldn’t be more aligned in our vision for the modern consumer landscape, and to create infinite value and lasting impact. I really feel that now is the time to open up our capital resources and our communities to accelerate incredible entrepreneurs.”
Meribeth Parker, current chair of the British Beauty Council and a member of The Equity Studio’s advisory board, said the consumer landscape is changing rapidly and Sweeting and Huntington-Whiteley are hypersensitive to the movements.
“I see in real time that there is a need to break free from trial initiatives, and collaborate to capture and retain the attention of consumers. [businesses that have] relevant audiences and move into new possibilities. Anna and Rosie are visionaries in understanding this dynamic and are practically tailor-made to shape this ever-changing consumer landscape together.”
Other members of the advisory board include Barbara Turner, chief executive officer and founding partner of Marcho Partners, a technology investment firm based in London; Ben Lewis, CEO and co-founder of Little Spoon, the online baby and children’s food brand, and investment banker and investor Luca Turco Liveri.
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