In addition to being one of the most well-known singers in the world, Rihanna most recently became a billionaire. Despite having a distinguished career in music and film, it was her company, Fenty Beauty, that finally allowed her to earn a huge fortune. We're examining her wealth and how she manages it, specifically how she came to have it.
Rihanna, the creator of Fenty Beauty, is one of the richest musicians in the world and the second-wealthiest entertainment after Oprah, with a net worth of $1.4 billion as of September, according to Bloomberg. The majority of Rihanna's wealth comes from her ownership of Fenty Beauty, which she owns 50% of, and her $270 million stake in her lingerie company, Savage x Fenty, despite the fact that she also makes money as a successful musician and actress.
Life Before the Billionaire Status
Her real name is Robyn Rihanna Fenty, even though everyone calls her Rihanna. She was born in Barbados to accountant Monica Fenty and warehouse manager Ronald Fenty. While Monica's father is of Afro-Barbadian and Irish/English ancestry, her mother is Afro-Guyanese.
Rihanna attended Combermere, a top-six school, and won several beauty pageants in her younger years. However, her life was dramatically altered when she met New York producer Evan Rodgers. She was signed at age 16 following a meeting with Def Jam Records CEO Jay Z, which marked the beginning of her successful music career.
The Evolution of the Fenty Beauty Empire
With its wide selection of 50 foundations, hard-to-find hues for people of color, and even a diverse variety of models during its advertising campaign, Rihanna's Fenty Beauty brand successfully expanded into new markets. In order to reach women who would otherwise never be able to find the proper foundation and cosmetics for their skin tone, the ad for the first time featured underserved and underrepresented people from many cultures.
In 2017, Fenty Beauty was established as a 50/50 joint venture with LVMH, the second-richest person in the world and the company that Bernard Arnault leads. In addition to being sold in Sephora stores, which are also owned by LVMH, the cosmetics are also available online. By 2018, the cosmetics line has surpassed other celebrity businesses like Kylie Cosmetics by Kylie Jenner and KKW Beauty by Kim Kardashian West in terms of annual revenue, pulling in more than $550 million.
Despite the pandemic's slowdown in cosmetic sales, Forbes reports that Fenty Beauty maintained its reputation as a top-tier makeup line and increased to $2.8 billion.
Rihanna’s Investments and Expeditions
Rihanna has launched other billion-dollar brands in addition to Fenty Beauty. At a $1 billion valuation, her lingerie line Savage x Fenty raised $115 million in funding. A joint venture between TechStyle Fashion Group, blue-chip investors, including private equity firm L. Catterton and Jay-Z's MVP(Marcy Ventures Partners) venture capital firm, and the company was established in 2018. According to Forbes, Rihanna still owns 30% of the company, and the most recent round of funding will be used to increase retail space and attract new clients.
However, she’s not been without some bumps in the path. In February, Rihanna and LMVH claimed that they had shut down Fenty, a high-end fashion and accessories house, according to a statement from Forbes. Fenty was a brand that was introduced in 2019, but despite that, it struggled during the pandemic and only released its final collection in November 2020.
Since the release of her last album, "Anti," in 2016, she hasn't produced any new music due to her work as a fashion and cosmetics tycoon, which may be the only thing bothering her fans.
Despite her enormous wealth, Rihanna is kind and founded the Clara Lionel Foundation in 2012, a charitable organization that fights injustices in education and the justice system.
Rihanna’s Wealth and Management
Sources claim that the Flynn Family Office, a renowned family office and business management firm that works with extremely wealthy people, their families, and offices, managed Rihanna's wealth in the past. It is an MFO (multi-family office) that collaborates with other MFOs, MFOs, and other professional groups.
The managing partner, an accomplished wealth manager named Rick Flynn, and the account manager, Michael Olshanetsky, along with the other account executives, managers, and associates, focus on internal reporting and business finances.
Flynn Family Office still has other well-known clientele, including Ellen Barkin and Katie Holmes, even without Rihanna.
Despite its success, the firm had a setback in 2015 when it established a sexist and racist atmosphere against its famous clients. There were records showing instances of Alan Kufeld, a former partner at the business, acting in a sexist manner, including saying that Rihanna was appealing because she was "not too dark." He continued by making remarks about which nationalities of the Caribbean were attractive based on skin tone.
A Look Into the Future
The four-year-old brand created by Rihanna is about to take the lingerie market by storm. According to Bloomberg, Rihanna is discussing an initial public offering (IPO) for her company, Savage x Fenty, with her advisors. Her company's value could reach $3 billion or more if she decides to go public. Her lingerie line is anticipated to generate about $216 million by 2025, even without the IPO.