Authentic Brands Buys Care Bears IP

Authentic Brands Group has finalized its acquisition of the iconic Care Bears intellectual property, marking a significant move for the brand management powerhouse. The deal, which saw IVEST Consumer Partners and Cloverlay exit their investment after a successful three-year turnaround, is set to inject new energy into the beloved characters. This acquisition underscores Authentic Brands Group's strategy of acquiring and revitalizing established entertainment properties with global appeal.

The transaction represents a substantial win for the private equity firms, who acquired the brand in 2023 from the Weiss family. Under their stewardship, Care Bears experienced a remarkable resurgence, with revenues quadrupling. The brand is now projected to surpass $750 million in retail sales by the close of 2026, a testament to a strategic repositioning that elevated its global brand awareness to 85%, positioning it as a top-tier property within its category. Products and content now reach an impressive 190 territories worldwide.

Mark Matheny, Chair of Care Bears and Operating Partner at IVEST, highlighted the brand's untapped potential. He stated that the team transformed Care Bears from a primarily children's entertainment entity into a robust consumer products licensing powerhouse. This successful execution validates IVEST's investment thesis: acquiring and scaling undervalued intellectual property with strong operational expertise can yield exceptional financial returns. The firm indicated its intention to replicate this successful model with other iconic brands.

Cloverlay, known for its focus on assets outside traditional private equity mandates, viewed Care Bears as a unique opportunity. Managing Partner Jeff Collins described the brand as an intangible, often misunderstood intellectual property asset offering significant upside potential. This investment aligns with Cloverlay's strategy of targeting holdings that exhibit uncorrelated performance characteristics, providing diversification within their portfolio.

The premium valuation achieved in this sale reflects a broader market trend where evergreen character intellectual property is highly sought after. Comparable transactions, such as the sale of the Peanuts brand for approximately $441 million (23x EBITDA) in late 2025, illustrate the significant value placed on licensing-driven character assets. These properties are increasingly attractive targets for both strategic acquirers and financial sponsors seeking stable, long-term revenue streams.

The successful commercialization of Care Bears under IVEST Consumer Partners and Cloverlay demonstrates the power of strategic brand management and targeted investment in revitalizing legacy intellectual property. Authentic Brands Group is expected to leverage its extensive network and expertise to further expand the Care Bears' global reach and product offerings, potentially unlocking new avenues for growth in the competitive consumer products market.