Seth Rodsky Launches Spotlight Brands with USD 500 Million Venture Fund

Major well-known brands have changed hands due to bankruptcy caused by the pandemic, which includes Brooks Brothers, which was acquired by a joint venture of Authentic Brands Group and Simon Property Group Inc., and Sur La Table, bought by Marquee Brands and e-commerce business CSC Generation.

FREMONT, CA: Strand Equity Partners co-founder and managing partner Seth Rodsky has launched a new USD 500 million investment firm with a target of backing fast-growing brands. The new entity, Spotlight Brands, targets investments and acquisitions in retail, apparel, food, beverage, beauty, fitness, fashion, media, and entertainment industries, and will have Rodsky serving as the executive chairman. Spotlight will back 10 to 20 companies with checks of approximately USD 50 million to USD 100 million per deal.

“It’s a tumultuous time, which we believe provides a once-in-a-generation opportunity to rebuild the best businesses,” Rodsky stated in an interview. “We’ll apply our expertise to an industry that hasn’t historically been driven by organic growth.” The outbreak of the coronavirus disease has disrupted various industries. The consumer landscape has transformed significantly among the affected industries, providing buying opportunities for those with capital.

Major well-known brands have changed hands due to bankruptcy caused by the pandemic, which includes Brooks Brothers, which was acquired by a joint venture of Authentic Brands Group and Simon Property Group Inc., and Sur La Table, bought by Marquee Brands and e-commerce business CSC Generation.

Spotlight will be backed by Strand Equity Partners, a Los Angeles, CA-based consumer growth equity firm investing in consumer brands and services. Some of the companies backed by Strand Equity partners include Art Si, Bai, Banza, Hum, and Right Rice. Strand’s executives will also be involved in the management of Spotlight as part of the investment. Strand was founded by Rodsky and co-founder Ted Schwartz. Rodsky and Schwartz made initial investments owned Schwartz Capital Group. The company typically makes investments between USD 2 million and USD 10 million and has been an early backer for companies like Oatly, Chop’t, and Vita Coco.

Strand recorded a return of nearly 25 times its investment in beverage maker Bai, and respective returns of about 10 and 8 times its bets on fashion retailer Thom Browne and supplements-maker Vital Proteins.