In an exciting development, billionaire David Blitzer of Blackstone Inc., former hedge fund manager Gabe Plotkin, and former football star Tim Tebow are among a group of investors who have placed their bets on Rhone, a distinguished men’s apparel brand.
This consortium recently acquired a substantial 29% stake in Rhone, previously held by the private equity firm L Catterton, as reported by Rhone’s CEO and co-founder, Nate Checketts. The transaction, completed in July 2022, has not been publicly disclosed in terms of financial details.
Plotkin, who led the purchase of Michael Jordan’s majority stake in the NBA’s Charlotte Hornets earlier this year, has backed Rhone through his family office, Tallwoods Capital. Blitzer, known for co-owning the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, has joined this exciting venture.
Rhone, founded in 2014 and specializing in workout and casual wear, has demonstrated profitability over the past three years, with an annual run-rate surpassing $100 million. Given its growth, Rhone could potentially achieve a valuation of over $500 million if it were to go public, though there are no immediate plans for an IPO, according to Checketts.
What sets this investment apart is Rhone’s dedication to maintaining its independence. Instead of aligning with private equity partners looking for a quick IPO, Checketts and his team have chosen a different path. This move was inspired by their commitment to long-term growth and independence, avoiding the potential pressures of private equity partners.
In a fascinating turn of events, Rhone’s CEO sought counsel from NFL’s Chief Media and Business Officer, Brian Rolapp, and financial expert Tracy Farr. Together, they explored the possibility of buying out L Catterton’s stake, leading to a unique and successful solution through a special purpose vehicle.
Notably, this venture also attracted investments from former NFL players like Tebow and Steve Young, further solidifying Rhone’s status as a prominent brand in the men’s fashion industry.
This bold move to secure Rhone’s independence has been met with enthusiasm from investors and industry experts. With deep-pocketed supporters and a commitment to growth, Rhone is set to continue its remarkable journey.
