Soho Square Capital has made a growth investment in Strathberry, the Scottish luxury leather goods company, marking the first investment from Soho Square Partnership Capital Fund II. Financial terms were not disclosed.
Strathberry was founded in Edinburgh in 2013 by husband-and-wife founders Guy and Leeanne Hundleby and has developed into an international accessible luxury brand. Its bags are handcrafted in Ubrique, Spain, and the company now ships products to more than 100 countries.
The company operates primarily through a digitally led direct-to-consumer model, supplemented by its own stores and wholesale distribution through luxury retailers.
Strathberry has generated a compound annual growth rate of 43% over the past three years.
The new capital will support the company’s next phase of international expansion, including additional stores, continued brand investment, and a particular focus on North America, which has become Strathberry’s largest market.
The company is also seeing demand across APAC and Gulf Cooperation Council markets and newer regions including Australia and Germany.
Soho Square uses a flexible investment structure that combines capital with minority equity stakes, allowing founders to retain control. Guy and Leeanne Hundleby will continue leading Strathberry with Managing Director Martin Byrne, while Soho Square Director David Steel will join the company’s board.
The transaction represents Strathberry’s second financing round, with Soho Square succeeding BGF as its institutional investment partner.
Soho Square’s deal team was led by David Steel with support from Joe Tebbutt and Alex Kustovskyi. Stifel provided buy-side corporate finance advice, Grant Thornton advised on tax structuring, and Hogan Lovells Cadwalader provided legal advice. Arrowpoint Advisory, part of Rothschild & Co, advised Strathberry’s shareholders, while Burness Paull served as legal advisor with support from Strategy& and KPMG.
KEY QUOTES:
“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.”
Guy and Leeanne Hundleby, Co-Founders of Strathberry
“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.”
David Steel, Director at Soho Square Capital
