TPG has exited most of its position in Anastasia Beverly Hills as part of a debt restructuring process, reducing its stake to around 6%, according to a Bloomberg report. 

The private equity firm originally acquired about 38% of the cosmetics company in 2018.

The investment was structured using a combination of debt taken on by the business and preferred shares purchased by TPG. As a result of the restructuring, the private equity firm’s original $600m investment has been largely written down.

Anastasia Beverly Hills is now working with lenders to address an upcoming loan maturity. The company had been operating under extended forbearance while restructuring talks progressed.

A spokesperson for Anastasia said: “Anastasia is taking steps to align our capital structure with the underlying strength of our business and our resilient operational performance.” The spokesperson added that the company is working with lenders on a solution.

Founder Anastasia Soare, who established the business in 1997, is also discussing options as part of the process. These include a potential capital injection of around $225m, while talks have also involved lenders taking equity positions and providing additional debt. No final agreement has yet been reached.

TPG declined to comment. The restructuring follows ratings downgrades earlier this year after a missed loan payment, which credit agencies said constituted a default.

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