Investment firm Soho Square Capital announced a growth investment in Strathberry, the Scottish luxury leather goods brand.
The investment is Strathberry’s second round of financing and sees Soho Square succeed BGF as Strathberry’s institutional partner.
This marks Soho Square’s first investment from Soho Square Partnership Capital Fund II.
“Established in 2013 in Edinburgh by husband-and-wife founders Guy and Leeanne Hundleby, Strathberry has grown into one of the most recognised names in accessible luxury, known for its commitment to craftsmanship and thoughtful design,” said Soho Square Capital.
“Every Strathberry bag is handcrafted in Ubrique, Spain, the same artisan heartland used by Europe’s leading luxury houses. The brand ships to more than 100 countries.
“Strathberry has built its reputation through a digitally led, direct-to-consumer model, complemented by a small estate of stores and a curated wholesale presence in leading luxury retailers.
“The company has established a loyal, international customer base and has been among the fastest-growing brands in its segment in recent years. Over the past three years, the business has delivered a CAGR of 43%, underscoring the brand’s continued momentum and international appeal.
“Working with Soho Square to draw on its capital, expertise and support, Strathberry will look to accelerate the next phase of its global expansion, with a particular focus on North America, a roll-out of new stores, and continued investment in the brand.
“North America represents Strathberry’s largest market globally, highlighting the significant opportunity for continued growth and development in the region.
“Beyond the core markets of the UK and North America, the brand continues to see strong demand from APAC and GCC markets and across newer regions, including Australia and Germany.
“Soho Square’s flexible approach to structuring investments, taking minority stakes alongside its capital, enables founders Guy and Leeanne Hundleby to retain control of the business they have built while accessing the funding and growth partnership experience to support their ambitions.
“The founders continue to lead the company, supported by managing director Martin Byrne. David Steel from Soho Square will join the board of Strathberry.”
Guy & Leeanne Hundleby, Co-Founders of Strathberry, 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.”
David Steel, Director at Soho Square Capital, 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.”
BGF said its exit follows an initial investment of £8 million in 2022 “and a period of exceptional growth, as the company established itself as one of the most recognised names and fastest growing brands in the luxury fashion market.”
The business now ships to over 100 countries and is stocked at a curated list of leading retailers worldwide.
“During BGF’s investment period, the business increased revenues more than five-fold with FY26 revenue of £50m, underscoring the brand’s continued momentum and international appeal,” said BGF.
Guy and Leeanne Hundleby said: “We thank BGF for the value added during a period of significant growth and international expansion for Strathberry.
“Our strong cultural alignment with BGF from the outset, along with their insight, expertise and challenge, has helped us collectively outperform the original investment plan.”
John Devine, Investor at BGF, said: “Strathberry has achieved exceptional growth during our partnership, 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.”
Graham Clarke, Regional Partner at BGF, said: “This transaction represents an excellent result for Strathberry and continues BGF’s strong run of successful exits in Scotland. It has been a pleasure to partner with Guy and Leeanne who alongside the wider management team have delivered a period of market-leading revenue growth”