IVEST and Cloverlay have agreed to sell the Care Bears brand to Authentic, with the transaction expected to close in the third quarter of 2026. The private equity firms transformed the iconic franchise over three years, growing the business fourfold before putting it on the market.

The sale represents a significant return for IVEST and Cloverlay, who acquired Care Bears during a period of renewed interest in nostalgic intellectual property. The brand's expansion across merchandise, entertainment, and digital platforms likely drove the substantial growth that attracted Authentic as a buyer.

Authentic's acquisition signals continued appetite for established entertainment properties in the private equity market. The deal adds to a string of recent MSP transactions led by firms including Abry and Lightbay, reflecting active dealmaking in the sector.

The transaction underscores how private equity firms can rapidly scale legacy brands through modern licensing strategies and cross-platform development before exiting at premium valuations.