Key Takeaways:
IVEST Consumer Partners and Cloverlay sold the Care Bears brand to Authentic Brands Group after a three-year turnaround that quadrupled revenue to more than $750 million.
Authentic Brands Group acquired the Care Bears intellectual property from private-equity firms IVEST Consumer Partners and Cloverlay, adding a brand on track to exceed $750 million in retail sales this year.
"Care Bears is a powerful addition to Authentic's entertainment portfolio and reflects the versatility of our global intellectual property platform," said Matt Maddox, president and chief executive of Authentic Brands. "Entertainment now represents approximately 20% of our business and is our fastest-growing vertical."
Under IVEST and Cloverlay's ownership since 2023, Care Bears revenue rose about fourfold. The brand has generated more than $12 billion in retail sales since its 1981 inception and now holds more than 1,000 intellectual property contracts across 190 territories. Global brand awareness reached 85%, ranking second among its peer group.
The deal strengthens Authentic's push into entertainment, which now accounts for about a fifth of its business. Authentic's portfolio of brands generates more than $36 billion in annual systemwide retail sales. For IVEST and Cloverlay, the sale validates a strategy of acquiring undercommercialized intellectual property and scaling it through licensing — a playbook they intend to repeat.
From Greeting Cards to Global Licensing
Care Bears began as characters on greeting cards before expanding into plush toys, television and other platforms. The Weiss family owned the brand for more than 40 years before selling to IVEST and Cloverlay in 2023. The two firms transformed the business from a children's entertainment company into a consumer products licensing operation, building marketing and category planning capabilities from scratch and shifting from a predominantly U.S. focus to a global growth agenda.
"Our work is done," said Jeff Collins, managing partner at Cloverlay. "We have taken it from point B to point D, and Authentic Brands is the right steward to take it forward."
The firms built minimum guarantees into licensing contracts, insulating the brand from shifts in consumer demand. Even if a Care Bears keychain sold zero units, the owners would still receive a guaranteed payment for brand licensing. The contracts also allowed the owners to share in gains above certain profit targets.
Comparable Valuations and Competitive Landscape
The terms of the transaction were not disclosed. As market context, Peanuts — a comparable evergreen character brand — was sold in December 2025 for C$630 million, representing approximately 23 times EBITDA.
Collins said the firms found success in a plush toy market that has become increasingly competitive, with brands such as Hello Kitty and China's Labubu. Rather than compete directly with newer, high-growth brands, the owners leaned on nostalgia tied to Care Bears and focused on tapping the existing, loyal fan base of family-oriented consumers.
"We spent three years in board meetings for five hours at a time shaking our fists at the sky about how great Hello Kitty is," Collins said.
Mark Matheny, chair of Care Bears and operating partner at IVEST Consumer Partners, said the outcome validates the firm's thesis that acquiring and scaling undervalued intellectual property paired with world-class operators generates exceptional returns. "IVEST intends to continue pursuing this strategy by identifying, investing in and scaling additional iconic brands where our playbook can create substantial value," he said.
This article is for informational purposes only and does not constitute investment advice.
