(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm which focuses on investing in and growing founder/entrepreneur-owned and led middle-market direct-to-consumer (“DTC”), business-to-business, distribution, and healthcare services and products companies, announced that on October 29, 2021, an affiliated investment group led by Cortec Group Fund VII, L.P. (“Cortec Fund VII”), in partnership with Maradith Frenkel (Little Sleepies’ CEO and Founder), completed the growth recapitalization of Little Sleepies, LLC (“Little Sleepies” or the “Company”). Terms of the transaction were not disclosed.
Founded in 2018, Little Sleepies is a high-growth, digitally-native, DTC branded sleepwear and accessories business. While the Company was founded as a designer and marketer of children’s pajamas and “zippies” (the Company’s one-piece pajama designed with several baby-friendly features), in response to overwhelming demand from its rapidly growing customer base, it has steadily expanded its product offering to include adult sleepwear and a growing collection of complementary products, such as blankets, crib sheets, bibs, and underwear. Little Sleepies’ sleepwear and accessories are made with high-quality, bamboo viscose fabric that is designed to be gentle on sensitive skin and comes in a variety of creative prints and styles.
Under Maradith Frenkel’s leadership, Little Sleepies has developed an innovative product offering and a loyal customer base, which has enabled the Company to scale at a rapid pace. Maradith Frenkel commented: “I was looking for an engaged partner with a proven track record of working with entrepreneurial management teams to build high-growth companies, including with real capabilities in digital marketing, new product introduction and global supply chain management. Cortec’s prior experience in these areas, particularly with consumer branded products and eCommerce businesses, convinced me that they were best able to help me and my team realize our vision for Little Sleepies.” Frenkel concluded: “Beyond their significant knowledge base and senior-level partner involvement, our entire team appreciated the values that Cortec and Little Sleepies share as we drive the Company toward sustainable, long-term growth.”
Dave Schnadig, Co-President of Cortec, stated: “We feel fortunate that Maradith and the rest of the Little Sleepies team chose Cortec as their partner to continue their success building a unique branded sleepwear and accessories company. Our meaningful experience working with entrepreneurs in the consumer products space helped us quickly understand the nature of Little Sleepies’ authentic brand, original products and engaged customers and drove our excitement for the opportunity.” Rob Whipple, a Partner at Cortec, added, “We look forward to supporting Little Sleepies as it pursues a variety of meaningful growth initiatives, including further increasing brand awareness and entering new complementary product categories.”
The Little Sleepies investment represents the third growth-focused platform in Cortec Fund VII, a $2.1 billion fund which closed in November 2019. Jones Day served as legal advisor to Cortec. Intrepid Investment Bankers LLC served as financial advisor and Jeffer Mangels Butler & Mitchell LLP served as legal advisor to Little Sleepies.
About Little Sleepies
Little Sleepies is a fast-growing direct-to-consumer sleepwear and accessories brand. The Company offers a cohesive portfolio of high-quality, bamboo viscose children’s pajamas and accessories in a variety of modern and creative prints, as well as matching adult pajamas and a collection of complementary blankets and crib sheets. Additional information about Little Sleepies can be found at www.littlesleepies.com.
About Cortec
Founded in 1984, Cortec invests in middle-market specialty direct-to-consumer products and services, distribution, and healthcare products and services companies in partnership with founders, owners, and management teams who want to work with Cortec to drive growth and improve business fundamentals. More information about Cortec can be found at www.cortecgroup.com.
