The growth spurt has been financed by $194 million from investors led by Advent International of Boston in late 2010. Advent's people, including ex-Caremark CVS Corp. boss Thomas M. Ryan, control four of the six outside seats on Five Below's board. A fifth goes to Howard Ross of LLR, the Ira Lubert-backed Philadelphia investment group, which counts Pennsylvania's state pension funds among its clients. The other outside director is Staples Inc. boss Ronald L. Sargent.
Early Zany Brainy shareholders included local Philly investors like the Cohn brothers (Sage Financial) and Josh Kopelman (ex of Half.com, now co-head of busy First Round Capital of West Conshohocken, New York, and Silicon Valley).
Schlessinger and Vellios stand to get rich from the deal: each control more than 1 million Zany Brainy share options. Even before the IPO they were highly-compensated: Schlessinger was paid $3.6 million in salary and bonus as "executive chairman" last year; Vellios collected $3.7 million as chief executive.
But Urban Outfitters is public, and Hayne owns 33 million shares, or around 20%, worth around three-quarters of a billion dollars.