A New Sparkle: TriWest Capital Partners Acquires Spence Diamonds, Fueling a New Era of Canadian-Focused Growth
In a significant move within the Canadian retail landscape, private equity firm TriWest Capital Partners has officially acquired a majority stake in Spence Diamonds, the iconic eight-store jewelry chain celebrated for its revolutionary customer experience. The deal marks the end of an era for the previous owner, London-based Lion Capital, which has fully divested its shares, and ushers in a new, well-capitalized chapter for the beloved Canadian brand.
While the financial terms of the acquisition remain confidential, the structure of the deal speaks volumes about the confidence in Spence’s future. The company’s existing and highly regarded management team, led by CEO Callum Beveridge, has not only been retained but has also personally invested in the company, taking a significant stake alongside TriWest. This signals a powerful alignment of interests, ensuring that the leadership team that has navigated the company through recent challenges is now a direct partner in its next phase of growth.
“We are thrilled to partner with Callum and the entire Spence management team,” announced Ryan Giles, Senior Managing Director at TriWest Capital Partners, in a statement confirming the deal. “Spence has built an incredible brand and a unique, customer-centric business model. We look forward to supporting them as they continue to execute on their strategic growth initiatives and solidify their position as Canada’s premier diamond retailer.”
This acquisition represents more than just a change in ownership; it signifies a strategic pivot for Spence Diamonds, a company with a storied history of innovation, ambitious expansion, and valuable lessons learned.
The Spence Diamonds Difference: A Legacy of Disrupting the Jewelry Industry
Founded in 1978, Spence Diamonds carved a unique niche for itself by fundamentally challenging the traditional, often intimidating, way people shopped for fine jewelry. Long before “experiential retail” became a buzzword, Spence was pioneering it with its signature “brass and glass” open showcase model. This approach was, and remains, a radical departure from the industry norm.
Revolutionizing the Customer Experience with the “Brass and Glass” Model
In a typical jewelry store, precious items are kept behind locked glass counters, requiring a salesperson to act as a gatekeeper. This can create a high-pressure environment, where customers may feel hesitant to ask to see multiple items or feel obligated to purchase after taking up a salesperson’s time.
Spence inverted this model entirely. They created bright, open-concept showrooms where thousands of ring designs are displayed as high-quality replicas in open cases. Customers are encouraged to browse freely, pick up styles, and try them on at their leisure, without any sales pressure. This hands-on, educational, and relaxed atmosphere demystified the process of buying an engagement ring. A diamond expert is always on hand to provide one-on-one consultation, but only when the customer is ready. This focus on education and empowerment has built a deep well of consumer trust and loyalty over four decades, making Spence a go-to destination for bridal jewelry, which remains its core specialty.
Embracing the Future with Artisan Created Diamonds
Spence’s innovative spirit extends beyond its store layout to its product offerings. The company has been at the forefront of embracing lab-grown diamonds, marketing them under their proprietary line, “Artisan Created Diamonds.” Rather than treating them as a lesser alternative, Spence presents them as a technologically advanced and ethically conscious choice for the modern consumer.
Artisan Created Diamonds are physically, chemically, and optically identical to their mined counterparts. They are real diamonds, simply created in a controlled laboratory environment rather than excavated from the earth. By championing this category, Spence has tapped into the values of a new generation of buyers who prioritize sustainability, transparent sourcing, and greater value. This forward-thinking strategy has allowed the company to offer larger, higher-quality stones at more accessible price points, broadening its market appeal and positioning it as a leader in a rapidly growing segment of the jewelry industry.
A Strategic Pivot: The Path Forward Under New Ownership
The partnership with TriWest Capital Partners is poised to inject new energy and resources into Spence’s strategic vision. After a period of ambitious, and ultimately challenging, international expansion, the company’s future appears to be firmly and proudly Canadian.
The Hard-Learned Lessons from the U.S. Market
Under its previous ownership by Lion Capital, which acquired the company in 2015 alongside Ivest Consumer Partners, Spence embarked on a bold attempt to crack the highly competitive U.S. market. Stores were opened in key American cities, including Scottsdale, Arizona; Austin, Texas; and San Jose, California. The goal was to replicate its successful Canadian model south of the border.
However, the U.S. retail landscape proved to be a formidable challenge. Facing entrenched local and national competitors, high market-entry costs, and the difficulty of building brand recognition from scratch, the venture struggled to gain traction. In 2020, amidst a shifting global retail climate, Spence made the difficult decision to close all its U.S. locations. At the time, CEO Callum Beveridge acknowledged the finality of the move, stating it would likely be the company’s “last attempt” to establish a physical presence in America. This experience, while difficult, provided invaluable strategic clarity.
Doubling Down on a Canada-First Growth Strategy
The acquisition by TriWest, a firm with deep roots in Western Canada and a history of nurturing Canadian businesses, signals a definitive return to a Canada-first strategy. The “strategic growth initiatives” mentioned by Ryan Giles are widely expected to focus on strengthening and expanding Spence’s domestic footprint. This could manifest in several ways:
- Targeted Expansion: Opening new stores in underserved but promising Canadian metropolitan areas.
- Store Modernization: Investing in refreshing and updating the existing eight locations to further enhance the signature Spence experience.
- Digital Transformation: Bolstering the company’s e-commerce platform and digital marketing efforts to create a seamless omnichannel experience for customers who browse online and buy in-store.
- Brand Building: Launching new marketing campaigns that reinforce Spence’s legacy of trust, innovation, and its dual expertise in both natural and lab-created diamonds.
The Players Behind the Transaction: A Meeting of Vision and Capital
Understanding the firms involved provides crucial context for the deal’s significance.
TriWest Capital Partners: A Champion of Canadian Enterprise
TriWest is not a typical private equity firm that swoops in for a quick flip. Based in Calgary, Alberta, TriWest has built a stellar reputation over 25 years for its partnership-oriented approach. The firm specializes in investing in successful, established Canadian companies and working closely with their existing management teams to unlock long-term growth. Their portfolio is diverse, but their philosophy is consistent: provide capital, strategic guidance, and operational support to help great Canadian companies become even better. Their investment in Spence is a classic TriWest move—backing a strong brand with a proven leader at the helm.
The End of the Lion Capital Era
For Lion Capital, the sale of Spence Diamonds marks the conclusion of its investment cycle. The London-based firm, known for its focus on consumer brands, successfully guided Spence through a transformative period that included the major push into lab-grown diamonds and the ambitious U.S. expansion. While the American venture did not pan out, Lion Capital’s tenure saw the brand modernize its product line significantly. Their exit is a natural part of the private equity lifecycle, allowing them to realize their investment while passing the torch to a new owner well-suited for the company’s next chapter.
With fresh capital, a renewed focus on its home market, and a leadership team that is personally invested in its success, Spence Diamonds is perfectly positioned for a brilliant future. The brand’s legacy of disrupting the status quo through its customer-first model and its embrace of technological innovation remains its greatest asset. Under the stewardship of TriWest and the continued leadership of Callum Beveridge, this Canadian jewelry icon is set to not only grow but to shine brighter than ever before.
