Authentic Brands Inc. announced Monday that it has sold an equity stake in the company to CVC Capital Partners and HPS Investment Partners, a deal that values Authentic Brands at $12.7 billion. BlackRock Long Term Private Capital, which has been the company’s largest stakeholder since 2019, will continue to hold that position. General Atlantic, Lion Capital and Shaquille O’Neal will also continue to hold significant positions. The transaction is expected to close in December. Authentic Brands is the parent company to Forever 21 and Nine West, and holds the brand name and rights to icons like Marilyn Monroe and Elvis Presley. Authentic Brands had filed paperwork to go public, but, with this deal, the company has decided to shelve the IPO. “I think we would have gotten a massive valuation … maybe even more than what we sold the business for. But guess what? I’d rather be private,” said Chief Executive Jamie Salter in a CNBC interview. The Renaissance IPO ETF is up 3.7% for the year to date while the S&P 500 index has gained 25.7% for the period.
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