do you know whether cole haan was a good private equity investment
7/3/2025 00:20am
**Cole Haan's Acquisition by Apax Partners**: In 2013, Apax Partners acquired Cole Haan LLC, a leading designer and retailer of premium footwear and related accessories, from NIKE, Inc., for $570 million in cash. This acquisition was part of Apax Partners' strategy to invest in brands with high growth potential.
**Performance of Cole Haan**: Cole Haan's financial performance has been mixed. While the company has seen a net income growth rate of 18.31%, its total revenue has declined by 10.9%. The diluted EPS growth rate is not available, but the diluted EPS for the last quarter was $3.45, which suggests a solid earnings per share.
**IPO Plans and Subsequent Performance**: Cole Haan withdrew its registration to go public in 2021, which could indicate challenges in meeting public market expectations or maintaining profitability. This withdrawal is also reflective of broader issues faced by private equity-backed retailers, which often struggle to achieve liquidity through IPOs or face difficulties attracting buyers, leading to potential bankruptcies.
**Conclusion**: Whether Cole Haan was a good private equity investment for Apax Partners depends on the returns achieved by the investors. While the company has shown growth in net income, the decline in revenue and the withdrawal of IPO plans suggest that the investment may not have met all expectations. The ultimate success of the investment would be determined by the exit valuation and the strategic direction taken by the investors post-acquisition. Without information on the exit valuation and strategic outcomes, it's challenging to definitively label the investment as good or bad, but the indications are that it presented challenges for the investors.