Bloomberg: IPOX® CEO Josef Schuster Comments on Risks of Celebrity-Backed IPOs

A recent Bloomberg article discusses the upcoming IPO of Once Upon a Farm, a kids' nutrition company co-founded by actress Jennifer Garner. The piece examines the potential tension between the marketing appeal of a celebrity backer and the historical market underperformance often associated with "Hollywood IPOs", such as Planet Hollywood and F45 Training.

While Garner serves as the public face of the brand, the article suggests that the company's potential success may rely more heavily on the operational experience of CEO John Foraker, formerly of Annie's Inc.

IPOX® CEO Josef Schuster was featured in the article, providing quantitative analysis on the track record of celebrity-endorsed listings. Schuster highlighted that while star power can aid initial marketing, the long-term returns for such companies have historically been poor compared to the broader market. He advised investors to prioritize operational expertise over fame.

"There’s an eight out of 11 chance that you will lose your money in a celebrity IPO. Most deals backed by Hollywood stars and athletes have done much worse than the market and you would have been lucky that you are actually walking away with some money after four or five years... Investors ought to look at the resumes of the management team rather than the star power of the celebrity involved."

Read the full article by Geoffrey Morgan for Bloomberg: Jennifer Garner Snack Firm Seeks to Escape Hollywood IPO Curse