The pros and cons of taking on private equity

Founder-led brands achieve sustainable growth by prioritizing long-term profitability and community-driven marketing over rapid, debt-fueled expansion. Andrea Faulkner Williams, co-founder of baby care brand Tubby Todd, demonstrates how maintaining a healthy EBITDA and a loyal customer base for years creates a strong foundation for strategic private equity partnerships. By thoroughly vetting potential investors like NexPhase Capital, founders can secure partners who support existing operational integrity rather than demanding immediate, disruptive changes. This measured approach, which included delaying retail entry until the brand was fully prepared, enabled a successful, high-impact launch at Target. Ultimately, the transition to private equity serves as a tool for scaling, provided that founders maintain accountability through structured board oversight and remain focused on their core mission of delivering high-quality, efficacious products to their community.