Morphe Said to Hire Jefferies for Capital Raise

Morphe has hired Jefferies to explore a capital raise, according to industry sources. The business is said to have done about $350 million in sales for 2018, with nearly $100 million in earnings before interest, taxes, depreciation and amortization. The business has been backed by Elevate Brandpartners, which also backs sunglasses line Quay, since 2017. Elevate is backed by private equity firm Summit Partners. Morphe confirmed it is looking to raise additional capital. “We are exploring raising capital to support the ongoing growth of the business into new channels and international markets,” a spokeswoman told WWD. Sources have speculated that Morphe has its eyes on the public markets, and one source said the next capital infusion may be a step before an initial public offering. Asked directly about the potential for an IPO in a December interview, the brand declined to comment. Spokespeople for Jefferies and Summit didn’t immediately return requests for comment.  Morphe has gained widespread popularity in recent years due to its close-knit relationship with the influencer community. The company’s collaborations with beauty influencers including James Charles, Jaclyn Hill and Jeffree Star — who each have millions of subscribers on YouTube and scores of followers on Instagram — have helped propel the brand’s

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