Growth firm to make first investment

Growth-stage private equity firm Glow Capital Partners is to make its first investment, a majority stake in uniforms business Cargo Crew.

Glow was formed by former Quadrant managing partner Justin Ryan and Adore Beauty (ASX: ABY) co-founder Kate Morris in 2021. The firm completed a first close of its Glow Capital 1 Fund earlier this year (APE&VCJ, Apr 2023).

The size of the Cargo Crew investment has not been disclosed but the company is generating annual revenue of about $20 million and Glow, with co-investors, is buying 51% of the company.

Ryan, Morris and Glow associate director Alex Downie are to join the company’s board.

Under the transaction agreement, Cargo Crew’s executive team will retain full management control.

Melbourne-based Cargo Crew was founded in 2002 by creative director Felicity Rodgers and remains a family business.

Rodgers, who has a background in fashion design, launched Cargo Crew after recognising a gap in the Australian market for corporate uniforms that “fused fashion with function”.

The brand is now the choice of many leading Australian restaurants, cafes and hotels and has overseas customers including Australian celebrity chef Curtis Stone, now based in Los Angeles.

Cargo Crew’s customers also include businesses across the retail, transport, banking, health and government services sectors.

The company has also grown an export market with 25% of its online sales now coming from outside Australia.

“Last week we had a sale from South America with a note saying they couldn’t find another brand that brings together fashion and function like Cargo Crew,” Rodgers said.

“The partnership with Glow Capital is the next natural step for our business. We have an incredible growth opportunity ahead of us, so we welcome the expertise in scaling up and building a global brand that the Glow team brings.”

Ryan said Cargo Crew was exactly the type of business Glow was seeking to invest in – “a great Australian business with the opportunity to be a global brand”.

“They are primed for growth that Glow can help accelerate,” he said. “Having worked with the team for the last few months, we know we have aligned values and the same vision for the next phase of growth.”

Downie said Cargo Crew’s uniforms were proven brand enablers for small and medium size businesses.   

“In any service industry, the way your team presents themselves and moves about the space is a huge brand element,” she said. We love that Cargo Crew makes businesses look fantastic, levels up their customer experience and makes a product that teams want to wear.”

In addition to founder Felicity Rodgers, the Cargo Crew executive team includes Rodgers’ sister, client services director Narelle Craig, and husband, operations director, Paul Rodgers.

Cargo Crew is being advised on the transaction by Lempriere Wells. Glow Capital’s advisors are Deloitte, L.E.K., Marsh and law firm Corrs.

 Image: Cargo Crew offers customisable hospitality uniforms.