Pat McGrath Labs has secured US$30m funding following court approval of financing from investment firm GDA Luma.
The investment marks a huge step in the recapitalisation of the brand, founded by make-up artist Dame Pat McGrath, and is said to mark “the beginning of a new phase of strong stewardship and long-term growth”.
GDA Luma, which specialises in distressed-for-control and special situations investments, has committed up to $10m in new debtor in possession (DIP) financing.
The firm has made a further commitment of at least $20m in post-emergence working capital.
GDA Luma will hold a controlling equity interest upon exit, with McGrath remaining as a significant equity owner and Chief Creative Officer of the brand in an effort to preserve “the artistic leadership and creative DNA that define the brand”.
The make-up artist is also Creative Director, Cosmetics, for fashion house Louis Vuitton, and spearheaded the launch of its luxury colour cosmetics offering, La Beauté, in August 2025.
Rumours of the brand being set for sale first came in December 2025, with the brand seeking a buyer through auction in January 2025.
The auction, which set out to place assets including collateral pledged by Pat McGrath Cosmetics, LLC and its founder Patricia McGrath (aka Dame Pat McGrath), was set to be held on 27 January.
It was cancelled just days before as the brand submitted a Chapter 11 bankruptcy claim on 22 January.
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