LONDON–(BUSINESS WIRE)–BlackRock Long Term Private Capital announced today that it has reached an agreement with Mr. Olivier Creed to become the new majority shareholder in Creed, his family’s multi-century old luxury fragrance company. Industry leading executive Javier Ferrán will become chairman of the company’s board of directors and join as an investor.
Mr. Ferrán, who has extensive experience with niche luxury brands and in working with European family-owned businesses, assumes his responsibilities at close of the transaction. He will work closely with Mr. Creed, who will continue as the master perfumer of the fragrance house.
The partnership with Mr. Ferrán and the Creed family, including Mr. Creed’s son Erwin, is BlackRock LTPC’s first investment in Europe and reflects its unique proposition to founder-led and family-owned companies who value a longer-term investment horizon.
Mr. Creed said:
“To have a business leader of Javier’s calibre join the Creed family is a significant boost to the business I have built over the past 50 years. His leadership and experience in the family owned luxury sector, as well as the financial support of a new majority investor with long term DNA, will ensure that Creed can continue to develop and produce the world’s greatest scents.
This business has been in my family for over 250 years and it was critical that, when the time was right, I was able to choose the best partners who would be able to best maintain our heritage as a luxury family business while helping us reach more people around the world. Both Javier and our new partners at BlackRock LTPC are ideal partners for Creed given their collaborative approach to working with their companies and their long-term orientation. I also look forward to continuing to work with all our staff, suppliers and distributors, and I know that they will continue to share in our success.”
Mr. Ferrán said:
“It is a privilege to build on Olivier’s legacy and become custodians of this treasured business. The quality of the products that Olivier and Erwin have developed has enabled Creed to become the world’s leading artisan fragrance company. I am looking forward to maintaining all the elements that make this such a great business and partnering with all of the company’s employees, suppliers and distributors.
BlackRock LTPC brings the right approach to building a premium brand, and together we can be a unique owner for the company. All of us recognise that the fragrance can reach new customers and enable them to experience the joy of Creed while growing carefully and thoughtfully over time.”
Dag Skattum, Head of European Office of Long Term Private Capital, said:
“We are very pleased to be partnering with the Creed family and Javier Ferrán as the new majority owner of a truly differentiated and world-class business that we can preserve and enhance for many years to come.”
Michel Dyens & Co acted as the exclusive financial advisor to Creed.
The House of Creed has become one of the world’s leading perfume houses. Established in 1760 in London by Henry Creed as a luxury goods maker, Creed is led by Mr. Olivier Creed, “Créateur Parfumeur” and direct descendant of the founder. Mr. Creed travels extensively to source, research, inspect and commission the finest materials for Creed. Creed manufactures essences using a traditional infusion technique which enables Creed to maintain the superior quality and authenticity of its fragrances.
About BlackRock LTPC
Long Term Private Capital is BlackRock’s direct private equity strategy and is focused on partnerships with best-in-class businesses, prudent capital structures, and flexible investment durations that enable compounded capital appreciation. LTPC’s team of 20 professionals is based in New York and London and invests globally with a focus on North America and Western Europe. LTPC is backed by BlackRock, Inc., the world’s leading investment firm, which manages more than $7.43 trillion on behalf of investors worldwide, including $215 billion across alternative asset classes. Further information is available at www.blackrock.com.
About Javier Ferrán
Javier Ferrán is a seasoned executive with over three decades of experience partnering with European family and founder-owned companies. Mr. Ferrán serves as chairman of Diageo plc, having previously been a non-executive director. Before that, he spent over 20 years at Bacardi, ultimately serving as President and CEO, and previously as president of Bacardi EMEA. He serves on the board of directors of International Consolidated Airline Group (IAC) and Coca-Cola European Partners, and previously served on the boards of Associated British Foods plc, SABMiller plc, William Grant & Sons Ltd, and Agrolimen SA.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. The investor may not get back the amount originally invested.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase.
Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.
An investment in the Partnership is speculative and includes a high degree of risk, including the risk of a total loss of capital. Any investment decision with respect to the Partnership must be based solely on the most current version of each of the offering memorandum, the Partnership’s governing documents and each limited partner’s subscription agreement. There is no assurance that the Partnership, any of the strategies described herein or any investment will achieve its objectives.
Valuation risk. The Partnership will be exposed to securities and other assets that will not have readily assessable market values. In such instances, the AIFM will determine the fair value of such securities and assets in its reasonable judgment based on various factors and may rely on internal pricing models.
The valuation of illiquid securities and other assets is inherently subjective and subject to increased risk that the information utilised to value such assets or to create the price models may be inaccurate or subject to other error. Due to a wide variety of market factors and the nature of the securities and assets to which the Partnership will be exposed, there is no guarantee that any value determined will represent the value that will be realised on the eventual disposition of the Partnership’s investments or that would, in fact, be realised upon an immediate disposition of such investment.
The Partnership Does Not Have a Fixed Term and Withdrawals Generally Will Not Be Permitted. The Partnership is not intended to be a short-term investment and has no certainty of returns. The Partnership is intended only for long-term investors able to accept the risks associated with an illiquid investment.
The Partnership does not have a fixed term and is generally expected to retain and reinvest proceeds from Investments. Additionally, even if an LP Termination Event or a Dissolution Event occurs (as defined in the Private Offering Memorandum), the Representative may cause the Partnership to continue to hold some or all Investments until at least the two year or five year anniversary of the relevant LP Termination Event provided that such date may be extended by the General Partner by up to two terms of one year each with the prior consent of all of the Cornerstone Investors. Investors should ensure that they have read and understand the Private Offering Memorandum and the operation of the Partnership following an LP Termination Event.
Limited Partners will not be allowed to voluntarily withdraw their Interests. Accordingly, the only manner in which Limited Partners may be able to realise a return on their investments in the Partnership, or even receive a return of capital, is to transfer their Interests. Interests, however, will be subject to restrictions on transfer and there can be no assurance that a market for the purchase or sale of the Interests will develop.
No Assurance of Investment Return. There can be no assurance that the Partnership will be able to generate returns for the Limited Partners. Even if the Investments prove successful, returns realised by the Partnership are expected to be reinvested in Investments and accordingly the Partnership will likely not produce a realised return to a Limited Partner unless such Limited Partner transfers its Interests in connection with a Liquidity Pool or otherwise. There can be no assurance, however, that a market for the purchase or sale of Interests will develop. Accordingly, Limited Partners may not be able to generate returns in connection with their investments in the Partnership. Additionally, even if such returns are generated, there can be no assurance that the returns will be commensurate with the risks of investing in the type of companies and transactions targeted by the Partnership.
Difficulty of Locating Suitable Investment. There can be no assurance that there will be a sufficient number of suitable investment opportunities to enable the Partnership to invest all of its committed capital in opportunities that satisfy the Partnership’s investment objectives or that such investment opportunities will lead to completed investments by the Partnership. The availability of investment opportunities generally will be subject to market conditions as well as, in some cases, the prevailing regulatory or political climate.
Please refer to the Private Offering Memorandum XI. INVESTMENT CONSIDERATIONS AND CERTAIN RISK FACTORS for a complete list of fund specific risk details.
This material is provided for informational purposes only and does not constitute an offer to sell nor a solicitation to invest in any jurisdiction in which such solicitation is unlawful or to any person to whom it is unlawful.
Moreover, it neither constitutes an offer to enter into an investment agreement with the recipient of this document nor an invitation to respond to it by making an offer to enter into an investment agreement. No recipient is permitted to use this information in any way that would violate U.S. securities laws, rules or regulations.
Any reference herein to any security and/or a particular issuer shall not constitute a recommendation to buy or sell, offer to buy, offer to sell, or a solicitation of an offer to buy or sell any such securities issued by such issuer. Historical performance information depicted herein is not indicative of future performance or investment returns, and actual events or conditions may not be consistent with, and may differ materially from, those depicted.
This material contains “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, and proposed or expected portfolio composition. No representation is made that the projections or forecasts presented will be achieved, or that every assumption made in calculating or presenting either the forward-looking information or the historical information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on the results presented herein by way of example.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of this presentation and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Reliance upon information in this material is at the sole discretion of the reader.
This document contains general information only and is not intended to represent general or specific investment advice. The information does not take into account your financial circumstances. An assessment should be made as to whether the information is appropriate for you having regard to your objectives, financial situation and needs.
Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.
This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.
Issued in the United States by BlackRock Investments, LLC, a member of FINRA.
© 2020 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK and SO WHAT DO I DO WITH MY MONEY are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.