Dear Friends, Investors, and Partners,

As we step into 2025, I’m pleased to share Beliade Consumer Partners' annual letter, reflecting on the milestones, challenges, and achievements that shaped our year in 2024. This past year has underscored our resilience and commitment to creating value for our investors, partners, and the communities we serve.

Highlights from 2024 include:

A standout exit delivering an 11.0X investment multiple and $15M in cash distributions to our investors.
Our firm’s portfolio's impressive +22% year-over-year revenue growth, reflecting the strength of the brands we back.
Key advancements in our mission to support U.S.-made goods and foster healthier lifestyles through innovative consumer products.

As we celebrate our 10th anniversary this year, we remain focused on our mission: "Modern Brands for Healthier Americans." This letter outlines how we are positioning ourselves and our portfolio for sustained growth, while also providing insights into market trends and opportunities for 2025.

Please find the letter enclosed. I encourage you to share it with others who align with our vision for building healthier, more sustainable futures. If you or someone in your network would like to connect further, I would be happy to arrange a conversation.

Thank you for your continued support and partnership. Together, we’re driving meaningful impact and delivering results.

Martin Dolfi

Founding Partner & CEO

Beliade Consumer Partners

invest@beliade.com | www.beliade.com

Our Perspective As We Enter 2024

Reflecting On 2024

2024 was a year of milestones, growth and challenges at Beliade Consumer Partners (BCP). These experiences have strengthened our resolve to continue to build a world-class investment firm and to become a leader in the U.S. consumer investing landscape. As of December 31st, our managed investment holdings were valued at approximately $102 million. This represents a decrease from 2023, due to substantial cash distributions our investors received during the year. Since 2023, we have returned over $22 million to our investors highlighting our commitment of balancing the pursuit of compelling long-term investment upside with the prioritization of investor liquidity in a broadly constrained environment. This balanced approach reflects our continued focus on delivering value to our investors while navigating the challenges of the complex and dynamic early-stage private capital markets.

A standout achievement in 2024 was the partial exit of our investment stake in one of our portfolio companies in Q3, which generated $15 million in cash distributions for BCP Fund III and investors in a BCP-managed SPV. This exit partially crystalized an 11.0X multiple on our invested capital, generated a 1,000% overall return on investment and a 100% internal rate of return. This outcome underscores our team’s expertise in identifying and capitalizing on private consumer sector opportunities, creating significant value for our investors by leveraging market dislocations. We initially invested in the now partially exited company in early 2020 during an incredibly challenging fundraising period for early-stage consumer businesses, which exemplifies our approach.

BCP’s Investment in Partially-Exited Portfolio Company. Growth & Profit Realization (2020–2025E)

Portfolio Performance

Our 30 active portfolio companies spanning 11 different U.S. states demonstrated resilience and growth amidst ongoing economic uncertainties during the year. Collectively, they generated $1.0 billion in net revenue in 2024, reflecting a +22% year-over-year increase from $845 million in 2023. Approximately one-third of our active portfolio companies were generating EBITDA profitability by year-end, underscoring their ability to adapt and execute strategic initiatives effectively. This growth extended beyond financial metrics, encompassing stronger consumer engagement, impactful employee development programs, and meaningful market expansion efforts. These achievements reflect our unwavering commitment to long-term value creation, not just for our investors but for the communities our companies serve.

Notable 2024 Achievement

Coterie | The company appointed a new CEO, Jess Jacobs, formerly the Chief Brand Officer, who was recognized as AdAge’s Breakout Brand Leader in 2024. LINK
Cotopaxi | New CEO Lindsay Shumlas implemented a new strategic focus on efficiency. LINK
Cure Hydration | Launched Cure Kids’ hydration line and secured Whole Foods distribution for 2025, unlocking a significant new retail partnership. LINK
The Good Crisp | The Good Crisp made its international debut in the UK through Whole Foods, marking the brand’s first entry into an overseas market. LINK
Hill House Home | Opened its newest store at the prestigious NorthPark Center in Dallas, TX, expanding the company’s retail footprint in 2024. LINK
Kosas | Expanded internationally into the Middle East through a partnership with Sephora, which operates 85 stores in the region, including the Dubai Mall location—famously the retailer’s top-grossing store globally. LINK
La Ligne | Opened its sixth retail store and its first in Boston, MA in May 2024. LINK
Little Sesame | Successfully launched several new product innovations, including new flavors like Preserved Lemon Hummus, Tahini Sauce, and a Kids’ Hummus line. LINK
Nemah | Launched its motherhood-focused skincare and baby care line on Anthropologie.com, achieving sellouts twice within the first 60 days. LINK
Poncho Outdoors | Sharpened its focus on the collegiate channel, highlighted by Matthew McConaughey proudly sporting Poncho’s “The 1963” corduroy button-down shirt on the sidelines at a University of Texas home football game. LINK
Rhone | Announced a multi-year global marketing partnership with the NBA. Welcomed five-time All-Star Kevin Love as a Brand Ambassador, further strengthening the brand's presence and mission. LINK
Super Smalls | Launched exclusive bead kits, now available in all 1,800+ Target stores and online at Target.com. LINK
The Outset Launched on QVC with debuting the brand live across QVC’s video commerce platforms. LINK
Van Leeuwen | Opened its 70th Scoop Shop in Cambridge, MA, at Harvard Square. LINK

Market Dynamics

Private equity fundraising in 2024 faced significant headwinds, driven by a cautious investment climate leading up to the U.S. national election. Globally, private equity fundraising declined by -15% in 2024, reflecting broader market uncertainties. At BCP, we observed this cautious sentiment firsthand, as many investors opted to retain their 2024 cash distributions, despite the substantial returns received related to our partial exit in one of our portfolio companies. However, private equity continues to demonstrate its resilience and appeal as an asset class. According to the American Investment Council’s (AIC) 2024 Q2 Performance Update, private equity returns have consistently surpassed the S&P 500 total return index over 5-year and 10-year time horizons. When excluding large technology companies from the index, private equity outperforms even over the 3-year horizon. These returns underscore the sector’s ability to deliver strong performance, particularly during volatile market conditions.

As we continue fundraising into 2025, we are actively seeking introductions to like-minded individuals and institutions who align with our overarching mission. At BCP, we are deeply committed to improving the health of American families and fostering the production of safer, ethically made consumer goods here in the U.S. We believe this focus positions us uniquely to capitalize on the growing demand for values-driven investments and to drive both economic and social impact. If you know of investors who share these values, we would greatly appreciate your referrals. Together, we can help shape a healthier, more sustainable future while also delivering attractive returns for our partners.

Supporting The Made-In-America Movement

In 2024, we deepened our support for American-made goods, reflecting the growing consumer interest in domestically produced products. Consumer Reports found that 76% of U.S. consumers prefer goods made in the USA when given the option. During my recent appearance on Bloomberg TV’s Markets Outlook (Martin Dolfi Bloomberg Markets Outlook Interview), I touched on how these efforts not only strengthen U.S. supply chains but also contribute to job creation and economic resilience. Looking ahead, we’re excited to continue backing companies that are embracing more U.S.-based manufacturing, helping to reduce dependency on global supply chains while enhancing efficiencies here at home.

The strategic use of tariffs can help level the playing field for domestic manufacturers, drive investment in American production, and enhance the long-term competitiveness of U.S.-made goods, while also reducing reliance on global supply chains. With 55% of U.S. manufacturers expanding domestic production capacity, the reshoring trend is revitalizing American industrial strength and aligning with our work.

Government incentives for domestic manufacturing further accelerate this momentum, setting the stage for a transformative decade. We see 2025 as the start of a Made-in-America resurgence—one that has the potential to reshape global supply chains, strengthen U.S. economic resilience, and deliver meaningful economic impact. By supporting this movement, we not only contribute to the growth of American industry but also position BCP to capitalize on significant value creation and strategic opportunities in this dynamic environment. Additionally, this year’s team gatherings included site visits to portfolio companies’ distribution facilities, where we witnessed firsthand the impact that our portfolio companies are making at a local level. These moments highlight the personal connections driving our mission and our belief in fostering resilient domestic supply chains.

Pictured: Martin Dolfi, Whitney Williams, and Bill Schultz from BCP visiting the Poncho Outdoors warehouse in Austin, Texas. Pictured alongside Clayton Spencer, CEO and Founder of Poncho Outdoors and his colleagues.

Consumer Trends

A core pillar of our investment strategy is driving healthier lifestyles through cutting-edge consumer products. We focus on brands that cater to the rising demand for nutritious, sustainable, and innovative options. This includes advancements in both plant-based nutrition and responsibly sourced animal-based proteins, reflecting a balanced approach to health and sustainability. Additional priorities include eco-conscious packaging and strategic partnerships with health-focused retailers, ensuring our portfolio aligns with evolving consumer preferences while making a meaningful impact on community well-being.

Wellness is no longer just a trend—it’s a movement reshaping how we eat, move, and live. The future of consumer trends isn’t about shiny objects; it’s about better sleep, smarter nutrition, and healthier families. This shift reflects the evolving priorities of consumers who increasingly value trust, quality, and holistic well-being in their daily lives. Consumer spending, which drives 70% of our GDP, represents a $4 trillion opportunity for American brands making meaningful impacts in this space. By the end of the decade, wellness-focused brands are expected to account for at least half of all consumer spending, setting the tone for a seismic shift in the market.

This movement toward wellness is also reflected geographically, as regional cities like Austin and Nashville thrive. These cities have nailed the formula: lower costs, business-friendly policies, and outdoor spaces that enhance quality of life. Meanwhile, major hubs like New York City and San Francisco are grappling with challenges around affordability, safety, and livability. For these cities to regain their momentum, leadership must address these core issues to attract both talent and innovation. Brands like Little Sesame (organic hummus), Rhone (performance apparel), and Cotopaxi (sustainable outdoor gear) are already aligning with modern values and delivering innovative solutions. The brands that truly listen to what families value today—health, sustainability, and authenticity—will thrive in the years to come.

By focusing on these emerging consumer trends, BCP’s portfolio is uniquely positioned to capitalize on the growing demand for healthier, more sustainable lifestyles. Notably, approximately 70% of our investments are tied to brands pioneering innovative wellness solutions.

Positioning For 2025

Valuation multiples in the consumer sector remained compressed in 2024, with a median EV/TTM net revenue multiple of 2.5x for M&A and private equity transactions. While this represents a modest recovery from 2023, it remains below historical norms. Despite these headwinds, the total enterprise value of BCP’s portfolio companies has been growing, contributing to an increase in our firm’s NAV. By staying agile and focused on long-term fundamentals, we’ve been able to navigate a dynamic investment landscape and continue delivering meaningful value to our investors.

2024 largely presented a more stable macro environment than in 2023, however concerns surrounding inflation, rising interest rates and fed policy drove heightened investor consternation in the fourth quarter. The S&P 500 recorded a +23% annual gain, reflecting resilience in U.S. equity markets despite ongoing global and macroeconomic uncertainties, however outperformance was not broad based and largely concentrated within a handful of companies (The Magnificent 7 – Apple, Nvidia, Microsoft, Amazon, Tesla, Alphabet and Meta accounted for over half of the index’s total returns). Inflation generally continued its downward trend, falling to +2.7% by November from +3.4% at the end of 2023, albeit inflation remained stubborn during the last several months of the year which drove the Federal Reserve to recalibrate towards fewer rate cuts in 2025. The yield on 10-year US treasuries has rebounded back towards 2023 highs, nearing 5%.

The uncertain macro picture aside, our portfolio companies continue to execute well. The +22% year-over-year revenue growth they’ve achieved lays an optimistic foundation as we head into 2025. While challenges in the broader market remain, our focus on disciplined management and strategic opportunities ensures we’re well-positioned to navigate what lies ahead. The momentum from our portfolio’s strong performance speaks to the resilience and potential of the brands we back.

Millennials and Gen Z, who together represent approximately 42% of the U.S. population, are the most influential demographic groups reshaping consumer expectations. For these consumers, new, elevated brands have become the baseline expectation, leaving many legacy brands struggling to keep pace with shifting values and preferences. By 2030, legacy brands are projected to experience a significant market share decline as disruptor brands continue to capture the loyalty of these modern consumers. This dynamic presents a unique opportunity: as legacy giants seek acquisitions to fuel their growth and adapt to evolving market demands, our portfolio of innovative, value-driven brands is ideally positioned for strategic exits. By aligning with modern consumer values, we are not only driving growth within our investments but also creating highly attractive targets for acquisition by established players seeking to remain competitive.

The stage is set for 2025 to become a significant year in consumer M&A history, driven by an influx of private equity investments and a surge in strategic acquisitions. With private equity firms holding approximately $2.1 trillion in dry powder, deal activity is gaining momentum, and valuations are climbing steadily. This robust capital deployment and heightened market interest are fueling an energized and competitive deal-making environment as we move into the new year.

Looking Ahead

As we enter our 10th anniversary year, we are focused on raising and deploying capital for BCP Fund IV and selectively launching new co-investment SPVs to invest alongside our funds in our strongest opportunities. This 10-year milestone is a testament to the firm’s integrity, innovation, and relentless drive to create value for investors. Our renewed mantra, “Modern Brands for Healthier Americans,” encapsulates our mission.

A development in 2024 was Whitney’s growing presence in Nashville. Her leadership and influence in this critical market have opened new doors for partnerships and opportunities, reinforcing BCP’s commitment to fostering regional growth. Nashville’s strategic importance aligns with our goal of driving economic development while supporting innovative consumer brands. This expansion also demonstrates our commitment to diversifying geographic footprints and strengthening regional ecosystems.

As we reflect on 2024, we celebrate key milestones that defined the year: the successful partial exit of a portfolio company, operational advancements across our portfolio, and the strong early momentum of BCP Fund IV, which has already increased in value by 20%. As we prepare to mark our 10th anniversary in July, we are energized by the opportunities ahead. This journey has strengthened not only our resolve but also our understanding of what it takes to succeed in today’s dynamic markets. At the heart of it all is our dedicated team, whose entrepreneurial spirit and commitment to long-term success drive everything we do. We take our responsibility as stewards of your capital very seriously, and we’re deeply motivated by the opportunity to create meaningful impact—not just for our investors, but for the families and communities touched by our portfolio companies.

We are grateful for your trust and partnership, which are central to our continued success. If you know others who share our vision, we would be honored by your referrals. As always, we welcome your feedback and ideas as we look forward to working together in the year ahead.

Martin Dolfi