Sequoia India has reportedly agreed to acquire Faces Cosmetics Canada from Everstone Capital for about $40 million, representing a rare buyout for the Sequoia affiliate, its first since the firm gained control of Prataap Snacks in 2011, per the PitchBook Platform. Based in Canada but with a major presence in India, Faces is a maker of cosmetics and skincare products that Everstone has reportedly backed since 2007.
While such private equity transactions are essentially unheard of at Sequoia India, they're also unusual at the mothership. Sequoia has completed 23 buyouts since the start of 2006, per PitchBook data, but many of those were moves in which the firm was one of multiple sponsors in an add-on deal, rather than the sole buyer in a traditional takeover.
Across the US and Europe, the frequency of VC firms investing in buyouts is on a gradual rise. Venture investors completed 252 buyouts in the US and Europe last year, according to PitchBook data, the second-highest figure of the decade. Investors have completed 135 transactions in the space so far this year, on pace for a decline, but that doesn't account for the usual lag in deal reporting.