A pair of private equity groups have taken a stake in one of the leading digital retailers in the toy and collectibles space.
IVEST Consumer Partners (IVEST) and Sam Zell’s Equity Group Investments (EGI) have made a strategic investment in Entertainment Earth. While terms of the deal were not disclosed, Entertainment Earth’s senior management team will continue to lead the business and retain a significant ownership stake in the company as the new investment fuels growth.
Entertainment Earth was founded in 1996 by brothers Aaron and Jason Labowitz, initially inspired by Hasbro‘s relaunch of the Kenner Star Wars brand. In the age of dial-up internet, Entertainment Earth began selling toys online before Walmart, Target, Amazon, and Toys “R” Us. Over the past 26 years, the company has expanded to become a retailer of toys and licensed collectibles across dozens of categories, including action figures, statues, prop replicas, clothing and accessories, and more. The company also creates and sources its own exclusive products, and functions as a wholesale distributor to clients including Target and FYE, among others.
“As we studied the collectible landscape, Entertainment Earth impressed us with the company’s unique customer-and-partner-first approach and its data-driven innovation to address the market,” says George Jones, co-founder and managing partner of IVEST and former president of Warner Bros. Consumer Products. “Aaron and Jason bring passion, creativity, and expertise — a winning combination — to expand the business and accelerate growth opportunities.”
Jones will serve as chairman of the board in a new alignment that includes Entertainment Earth CEO Aaron Labowitz, President Jason Labowitz, and Chief Technology Officer Aaron Lipman alongside IVEST Partner Chris Munyan and EGI Managing Directors Rahul Sen and Mike Leahy.
“While we have achieved great heights already, seeing those dreams become a reality requires partners who are aligned with our vision, bring complementary skill sets, and take a long-term strategic view,” says Aaron Labowitz. “This partnership allows us to continue moving the company forward with additional capital, fresh ideas, and significant contacts in the industry.”
In addition to its digital storefront, Entertainment Earth is a major fixture at live events on both coasts, including Comic-Con International: San Diego (SDCC) and New York Comic Con (NYCC).
For more on the backstory of Entertainment Earth, check out the Retail Rundown feature from the Summer 2019 issue of our sister publication, the Pop Insider.
