Brilliant Earth Bundle
Who Owns Brilliant Earth?
Understanding a company's ownership is key to its strategy and accountability. Brilliant Earth's IPO in September 2021 significantly altered its ownership structure. Founded in 2005, Brilliant Earth Group, Inc. (Nasdaq: BRLT) is a global leader in ethically sourced fine jewelry.
Brilliant Earth operates 42 showrooms across the US as of August 2025 and serves customers in over 50 countries. The company reported net sales of $422 million for the full fiscal year 2024. As of August 15, 2025, its market capitalization was approximately $34.7 million.
Delving into Brilliant Earth's ownership reveals the stakes held by its co-founders, institutional investors, and public shareholders, and how these have evolved. This analysis includes a look at its Brilliant Earth PESTEL Analysis.
Who Founded Brilliant Earth?
Brilliant Earth was co-founded in August 2005 by Beth Gerstein and Eric Grossberg, both Stanford University graduates. Gerstein, with an engineering background and an MBA focused on social enterprise, was motivated by her personal difficulty in finding ethically sourced engagement rings in 2003. This experience fueled their vision to create a jewelry company prioritizing responsible sourcing.
| Founder | Background | Founding Year |
|---|---|---|
| Beth Gerstein | Electrical Engineer, MBA in Social Enterprise Entrepreneurship | 2005 |
| Eric Grossberg | Stanford Graduate | 2005 |
Founding Vision
The company's inception was driven by a personal quest for ethical jewelry. This personal challenge directly shaped the business model and mission from its earliest stages.
Ethical Sourcing Standard
A core tenet from the outset was the establishment of a 'Beyond Conflict Free' diamond standard. This commitment to responsible practices is central to the company's identity.
Early Institutional Involvement
Mainsail Partners provided a significant Conventional Debt funding round of $40 million in 2019. This indicates substantial institutional backing prior to the company's public offering.
Ownership Structure
The founders, Beth Gerstein and Eric Grossberg, jointly control Just Rocks, Inc., which is part of their overall ownership framework.
Initial Equity Details
Specific details regarding the initial equity split during the private company phase are not publicly disclosed. Information on early agreements like vesting schedules is also not readily available.
Founders' Role
Beth Gerstein and Eric Grossberg conceived the company's vision together, stemming from Gerstein's personal experience. Their collaborative effort laid the groundwork for the company's mission.
The founders' vision for responsible sourcing in the jewelry industry was the driving force behind the company's establishment. While the exact initial ownership percentages for the private company phase are not publicly available, the commitment to ethical practices and the 'Beyond Conflict Free' diamond standard was fundamental from the beginning. Early institutional support included Mainsail Partners, which participated in a $40 million Conventional Debt funding round in 2019, highlighting their involvement before the company's IPO. The founders, Beth Gerstein and Eric Grossberg, also maintain control over Just Rocks, Inc., which is integrated into their ownership structure. Public records do not contain details regarding early agreements such as vesting schedules, buy-sell clauses, or any initial ownership disputes or buyouts, making it difficult to ascertain the precise history of Brilliant Earth ownership beyond the founders' initial vision and early institutional backing. Understanding the Competitors Landscape of Brilliant Earth can provide further context on the market dynamics during its formative years.
Key Aspects of Early Ownership
The early stages of Brilliant Earth's ownership were characterized by the founders' direct involvement and a clear mission-driven approach. Institutional investment began to play a role as the company grew.
- Founders: Beth Gerstein and Eric Grossberg
- Founding Year: 2005
- Core Mission: Ethical sourcing and 'Beyond Conflict Free' diamonds
- Early Investor: Mainsail Partners (participated in 2019 debt round)
- Related Entity: Just Rocks, Inc. (jointly controlled by founders)
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How Has Brilliant Earth’s Ownership Changed Over Time?
Brilliant Earth Group, Inc. transitioned to a publicly traded entity on the Nasdaq Global Market in September 2021, marking a significant shift in its ownership structure. This Initial Public Offering (IPO) involved the sale of 9,583,332 shares at $12.00 each, raising $115.0 million in gross proceeds.
| Shareholder Type | Number of Shareholders | Total Shares Held |
|---|---|---|
| Institutional Investors | 51 | 38,149,317 |
| Insiders (including Mainsail Management) | N/A | 31,898,071 (Mainsail Management) |
| Co-founders | 2 | 100,000,000+ (combined) |
Following its IPO, Brilliant Earth's ownership is now distributed among various entities, including institutional investors and the general public. As of August 15, 2025, there are 51 institutional owners holding over 38 million shares. Mainsail Management Company, LLC stands out as a major shareholder, possessing 32.12% of the company's shares, and is also classified as an insider. Other significant institutional investors include SMCWX - SMALLCAP WORLD FUND INC Class A, Capital World Investors, Ameriprise Financial Inc, Russell Investments Group, Ltd., Vanguard Group Inc, and BlackRock, Inc. The company's founders, Beth Tanara Gerstein and Eric Scott Grossberg, retain substantial stakes, with Beth Tanara Gerstein holding approximately 50.58% and Eric Scott Grossberg holding around 49.46% of the company's shares, reflecting their continued significant influence. The ownership structure also involves a holding company, Brilliant Earth Group, Inc., and Brilliant Earth, LLC, with continuing equity owners holding a 86.0% economic interest in the latter as of December 31, 2024.
Key Stakeholders in Brilliant Earth
Understanding who owns Brilliant Earth is crucial for assessing its strategic direction and financial stability. The company's ownership is a mix of its founders, institutional investors, and the public market.
- Brilliant Earth Group, Inc. became a publicly traded company in September 2021.
- Mainsail Management Company, LLC is a significant institutional investor, holding over 32% of the shares.
- Co-founders Beth Tanara Gerstein and Eric Scott Grossberg maintain substantial ownership stakes.
- The company's structure includes a holding company and an LLC with non-controlling interests.
- A Brief History of Brilliant Earth details its ownership evolution.
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Who Sits on Brilliant Earth’s Board?
The governance of Brilliant Earth Group, Inc. is overseen by its Board of Directors, with key leadership roles held by its co-founders. This structure reflects the company's ownership dynamics, where a significant portion of voting power is concentrated among its founders.
| Share Class | Votes Per Share | Voting Power (as of April 22, 2025) |
|---|---|---|
| Class A Common Stock | 1 | 2.7% |
| Class B Common Stock | 1 | 6.6% |
| Class C Common Stock | 10 | 90.7% |
| Class D Common Stock | 10 | 0% (None outstanding) |
The multi-class share structure at Brilliant Earth Group, Inc. is central to understanding who owns Brilliant Earth and how decisions are made. Class C common stock, held primarily by the founders, grants ten votes per share, giving them a commanding 90.7% of the total voting power as of April 22, 2025. This arrangement significantly influences the company's direction and board composition, ensuring the founders' vision is paramount in the Brilliant Earth company ownership structure. The company's commitment to its mission is also evident in its operational strategies, as detailed in our analysis of the Marketing Strategy of Brilliant Earth.
Board and Voting Power Dynamics
Founders, through a dual-class share system, hold the majority of voting power. This structure ensures concentrated control over company decisions.
- Class C shares grant 10 votes per share.
- Founders control approximately 90.7% of voting power.
- Class A and B shares have 1 vote per share.
- Board approval at the 2024 meeting was nearly unanimous (99.9%).
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What Recent Changes Have Shaped Brilliant Earth’s Ownership Landscape?
Brilliant Earth's ownership landscape has significantly evolved since its initial public offering in September 2021. The early lock-up period expiration in December 2021 allowed a substantial number of shares to become available for trading, influencing the company's shareholder base.
| Key Event | Date | Impact on Ownership |
| Initial Public Offering (IPO) | September 2021 | Transitioned from private to public ownership. |
| Early Lock-up Release | December 7, 2021 | Approximately 0.7 million shares of Class A common stock became eligible for sale. |
| Director & Officer Lock-up Release | Late December 2021 | Additional shares held by company leadership became tradable. |
The leadership structure remains anchored by co-founders Beth Gerstein, serving as CEO, and Eric Grossberg, as Executive Chairman. In August 2024, the executive team was bolstered with the appointments of Pamela Catlett as Chief Brand Officer and Sharon Dziesietnik as Chief Operations Officer, signaling a focus on sustained growth and operational efficiency. The company's expansion continues, with 42 showrooms operational as of August 2025 and further openings planned for the current year. Despite a 5% year-over-year decline in net sales to $422.2 million in 2024, total orders saw a 7% increase, driven by demand for lower-priced items and fine jewelry. Brilliant Earth has maintained positive Adjusted EBITDA for 16 consecutive quarters post-IPO. The shareholder profile reflects increasing institutional ownership, a common trend for public companies. The company's commitment to sustainability and ethical sourcing, as detailed in its 2024 Mission Report, continues to be a core tenet. There have been no public announcements regarding potential privatization or major shifts in ownership beyond the typical dynamics of public company investing.
Leadership Continuity and Expansion
Co-founders Beth Gerstein and Eric Grossberg continue to lead the company. Recent executive appointments aim to support long-term growth. The showroom network has expanded to 42 locations by August 2025.
Financial Performance and Ownership Trends
Net sales saw a slight decrease in 2024, but order volume increased. The company has consistently reported positive Adjusted EBITDA. Institutional investors are increasingly represented in the shareholder base.
Company Strategy and Core Values
The company's strategy emphasizes sustainability and ethical sourcing. These values are central to its brand identity and operations. Understanding the Revenue Streams & Business Model of Brilliant Earth provides context for its ownership structure.
Future Ownership Outlook
No public information suggests imminent privatization or significant ownership changes. The current ownership trends align with typical patterns for publicly traded companies. The focus remains on operational execution and market positioning.
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