Boxycharm participated in a majority recap and received growth capital from KarpReilly
- Background: Headquartered in Miami, FL, BOXYCHARM is the premier monthly beauty box subscription service, delivering 4-5 full-size and luxury travel-size products of well-known, popular, chic, and up-and-coming cosmetic brands. BOXYCHARM’s unique value proposition is their ability to provide a combination of the newest and highest quality brands and products in full-size offerings, while most competitors offer sample-size products.
- Cassel Salpeter:
- Served as financial advisor to the Company
- Ran a competitive capital raise process, identifying and contacting over 100 strategic and financial parties
- Structured a minority recap and growth capital raise with a built-in option for a majority recap
- Challenges:
- Earn-out structure to increase valuation of capital infusion contingent on success-based performance benchmarks
- Minority shareholder buyout
- No prior relationship with investor
- Outcome: In February 2016, KarpReilly Investments, LLC invested in BOXYCHARM. Subsequently, in October 2016, KarpReilly exercised their majority recap option. KarpReilly is a private investment firm based in Greenwich, CT.
