Soho Square backs Strathberry and takes board seat – Daily Business

Scottish luxury leather brand Strathberry, popular with celebrities and royalty, has secured equity investment from Soho Square whose director David Steel will take a seat on the board.

Founders Guy and Leeanne Hundleby will continue to retain control of the Edinburgh-based business, supported by managing director Martin Byrne and the brand’s senior leadership team.

The undisclosed funding will support the company’s growth ambitions, particularly in North America, its biggest market.

Beyond these core markets, the brand continues to see strong demand from APAC and GCC markets and across newer regions, including Australia and Germany.

Strathberry operates four physical UK stores in London and Edinburgh. Further expansion is planned for FY27 with two stores set to join the brand’s portfolio, one in London and Strathberry’s first international location opening in New York next year.

This marks the first step in the brand’s US bricks-and-mortar expansion strategy, with a focus on securing further prime retail locations across its largest global market.

The brand ships to more than 100 countries and is stocked at a curated list of leading retailers worldwide. This investment marks a second round of funding for the Scottish brand, following its 2022 to 2026 investment partnership with BGF.

Soho Square is focused on financing established and growing UK and European SMEs, and the investment in Strathberry is the first from Soho Square Partnership Capital Fund I. It follows a year which saw it deliver a 39% YoY growth in revenue to £50.5 million.

Mr Steel said: “Strathberry is an exceptional brand with a rare combination of craftsmanship, a distinctive design signature and a genuinely international, loyal customer base.

“The label’s ‘high-end quality at accessible prices’ ethos is resonating with shoppers disillusioned with top luxury houses. Guy, Leeanne and the team have created something special, and there is significant scope to grow the business further, particularly internationally. We are delighted to be backing the team and look forward to supporting their plans.”

In a statement, the founders said: “This investment marks an incredibly exciting chapter for Strathberry. Since founding the business, our ambition has always been to build a global brand with a distinct point of view, while staying rooted in our commitment to exceptional craftsmanship, creativity and thoughtful design.

“This partnership gives us the opportunity to accelerate that vision and invest in the next phase of our growth. We look forward to working closely with David and the whole team at Soho Square Capital.”

John Devine, investor at BGF, said: “Strathberry has achieved exceptional growth during our partnership, increasing revenues more than five-fold and expanding from its Scottish roots into an internationally recognised brand.

“We are proud to have supported Guy, Leeanne and the whole team, and wish them every success as they begin the next stage of their journey with Soho Square Capital.”

Rothschild & Co served as financial advisor to the shareholders of Strathberry in relation to the investment. Burness Paull acted as legal adviser, and vendor due diligence was provided by Strategy& (commercial) and KPMG (financial and tax).