Investor chair steps down from listed company

Former Quadrant Private Equity managing partner Justin Ryan has stepped down as chair and left the board of beauty products online sales platform Adore Beauty Group (ASX: ABY).

Independent director Marina Go, a former media sector executive, has been appointed chair.

Ryan led a 60% investment in Adore Beauty by Quadrant Private Equity Growth Fund 1 in 2019 and the company’s IPO and ASX listing in October 2020. He left Quadrant in April this year and in September set up a new growth capital private equity firm, Glow Partners, with Adore Beauty co-founder Kate Morris. Glow Partners is believed to be well advanced on raising its first fund which has targeted overseas as well as local investors.

In a 2 November announcement by Adore Beauty, Ryan said: “I am proud to have been involved in Adore Beauty’s journey to being a listed company. Adore Beauty has a tremendous future and I leave knowing that it has the right strategy and the right board and management team in place. I believe now is the right time to stand back as chair of Adore Beauty and make way for an independent non-executive chair so the company can transition to a majority independent board. I will retain may shareholding in Adore Beauty and remain very optimistic about the company’s growth prospects.”

Ryan held 39,000 shares in Adore Beauty on 2 November.

Adore Beauty plans to appoint an additional independent non-executive director “in the near future” which will result in the board having a majority of non-executive directors.

Morris and husband James Height launched Adore Beauty in 2000 as Australia’s first beauty-focused e-commerce website. The business now offers more than 10,000 products.

Morris and Height were joint chief executives of the company until Morris stepped down in 2018. Height continued as sole chief executive until August 2020 when former SEEK (ASX: SEK) executive Tennealle O’Shannessy was recruited to the role. Height is now the company’s chief data officer.

Adore Beauty’s 2021 annual report released on 30 September showed Quadrant Private Equity remained the largest shareholder with a 32.51% stake. Morris and Height each held 10.84% stakes down from 21.67% stakes recorded on 27 October 2020.

Adore Beauty issued shares in its IPO at $6.75. They were trading around $5.04 on 3 November.

Image: Glow Partners founders Justin Ryan and Kate Morris.