Week Nine - #BS4F Private Equity
News in short
After three years spent at Kering’s Bottega Veneta, the designer is now set to lead Chanel's fashion operations, overseeing all haute couture, ready-to-wear, and accessories collections. He will report directly to Bruno Pavlovsky , president of Chanel Fashion and Chanel SA. In a joint statement, Alain Wertheimer, global executive chairman, and Leena Nair , global CEO of Chanel, described him as “one of the most gifted designers of his generation”.
LVMH Luxury Ventures (LLV) has acquired a minority stake in Db Bags, a Norwegian brand founded in 2012 known for its functional, high-quality luggage designed for outdoor enthusiasts and travelers. This marks LLV’s second Scandinavian investment, following Our Legacy, and continues its expansion in the functional luxury market, after its acquisition of Rimowa in 2017.
Db CEO Richard Collier called the partnership a “huge milestone,” emphasizing LVMH’s strategic expertise in driving global expansion while staying true to Db’s snow, surf, and skateboarding roots. LVMH’s support will fuel Db’s growth in North Europe, the US, and Asia. Julie Bercovy , CEO of LVMH Luxury Ventures Advisors, praised Db for its distinctive designs and close community ties, positioning it as a key player in the travel accessories sector.
Nike’s decision to shut down its virtual sneaker brand RTFKT is a stark reminder of the pitfalls of betting big on trendy tech without clear commercial viability. Acquired during the 2021 crypto boom, RTFKT was hailed as "the Supreme of the metaverse", ?yet it failed to resonate beyond niche audiences. Under new CEO Elliott Hill , Nike appears to be recalibrating, prioritizing its core business over speculative ventures like NFTs and blockchain. While RTFKT’s vision of digital sneakers and Murakami-designed avatars sparked initial excitement, the broader collapse of crypto markets left many investors and fans disillusioned.
This move signals a shift at Nike: away from experimental distractions and back to fundamentals—innovative products, strong customer relationships, and streamlined operations. For brands chasing the metaverse dream, RTFKT’s rise and fall serve as a cautionary tale: tech hype alone won’t sustain a business.
Many fashion companies are now using AI within the design process, generating ideas and even creating sketches. However, companies are now taking this further by involving consumers in the design process. Puma is investing in technological innovation by leveraging AI to bring Manchester City fans closer to the game, allowing consumers to co-design a new team uniform. One of the designs will be selected through a competition and worn for around 10-12 matches.?
The AI-powered platform allows consumers to simply describe their idea and edit it in under 2 minutes. Puma wants to break down design barriers, with the goal of getting fans more involved. This initiative reflects the growing integration of sports and fashion and highlights how organisations should capitalise on post covid consumers who increasingly value unique and experience-driven opportunities.
LVMH has recently announced the closing of its Venice multibrand store, Fondaco dei Tedeschi, due to falling sales and the economic slowdown. Its Paris store is also struggling, but closing it is out of the question, considering the €1 billion LVMH spent buying it and then renovating it for reopening in 2021 after a 16 year closure. Plans to restore La Samaritaine Paris back to profitability include splitting it from its parent, Duty Free Shoppers (DFS). La Samaritaine has traditionally been run from Hong Kong by DFS, whose duty-free status can sometimes make luxury items up to 60% cheaper for its customers. By splitting Samaritaine away from DFS Group, LVMH seeks to bring its store policies closer in line to its other Parisian department store, Le Bon Marche? Rive Gauche. Whilst Le Bon Marche? Rive Gauche is also duty-free for tourists, its status and fame help attract a wide range of customers. La Samaritaine’s main clientele are wealthy Asian tourists who can take full advantage of the VAT-free purchases, but the pandemic then immediately followed by China’s economic downturn has caused it to struggle to attract customers. Its tax losses alone since 2021 amount to nearly €70 million. LVMH made a big bet with the money it poured into this 1st arrondissement real estate, even as all data available showed an increase in preference towards digital sales and the ultra-wealthy Chinese shifted to buying luxury in China and Singapore instead of flying to Europe.
John Galliano is leaving Maison Margiela after a decade at the helm as its creative director. Galliano oversaw a very successful run at the maison, with sales rising 22% last year. Galliano was known for infusing Maison Margiela’s designs with a gender-fluid style that was at once campy and artisanal. Maison Margiela has been esteemed for its craftsmanship even as many luxury brands forsake high quality in order to cut production costs. In a statement on Instagram, Galliano thanked Martin Margiela for the “life-saving creative moment” giving part credit to the “family” he made at Margiela for successfully maintaining sobriety for the last 14 years. There is no news as of yet as to who will take over Maison Margiela’s next chapter.
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Polène, the Parisian handbag brand founded in 2016, is rapidly becoming a global success in the direct-to-consumer (DTC) space, with sales reaching $153 million in 2024. Known for its contemporary, minimalist designs inspired by nature, Polène has captured the attention of a growing international fanbase. Polène’s success is driven by its focus on affordable luxury - offering high-quality leather bags at accessible prices, a niche between premium and high-end luxury goods.
With plans to expand into London, Munich, Miami, and Dubai, Polène is continuing its measured growth while staying true to its artisanal roots in Ubrique, Spain. Supported by investment from L Catterton, the brand remains family-owned, maintaining a strong focus on quality and customer experience as it scales.
Spotlight - Style Capital SGA S.P.A.
For our non-Italian readers: STYLE CAPITAL SGR S.p.A. is a public limited company that operates as an asset management company specializing in the management of investment funds and portfolios. After our last successful issue on private equity related to L Catterton, today we will take a deep dive into the Italian private equity world that follows the luxury and fashion industry. The term "Lifestyle, Fashion & Luxury" refers to an overarching market segment, which in our case includes Italian and international companies characterized by a high level of creativity, design, manufacturing quality and innovation, present on the market at a global level with a selective distribution and with recognized brands and products with high added value.
STYLE CAPITAL SGR S.p.A. , headquartered in Milan, began its journey as an asset management company, authorized by the Italian Central Bank, on September 16, 2005. It is registered in the FIA (Alternative Investment Funds) register and operates in the promotion and management of closed-end investment funds. When analyzing this company, it is worth mentioning Roberta Benaglia , the current CEO of the company, who joined Style Capital SGR S.p.A (formerly known as DGPA SGR S.p.A.) in 2005 as a founding partner. Back in 2007, Benaglia was the driving force behind the establishment of the DGPA fund, a private equity firm operated by Style Capital, which is responsible for the company’s investments in fashion e-commerce. Benaglia led the fund’s investments in distressed luxury footwear brand Golden Goose, premium womenswear brand Twin-Set and swimwear manufacturer Sundek. In 2016, she became chief executive officer and majority shareholder of the company’s second fund.
The company has since invested in companies such as forte_forte, MSGM, Re/Done, Zimmermann and LuisaViaRoma. With a management team characterized by experience and motivation, Style Capital strives to establish itself as a prominent player in the European private equity sector. The company's unique positioning allows it to capitalize on investment opportunities in the Italian and international markets, with a focus on small and medium-sized companies.
In particular, the company focuses primarily on medium-sized companies with a turnover of between 20 and 200 million euros, referred to as "core targets". These companies operate in sectors known for their excellence in lifestyle, fashion and luxury, characterized by elements such as style, design, quality and uniqueness of products. The company also emphasizes selective distribution, innovation and a strong emphasis on community driven brands. When selecting investment opportunities, the company looks for companies with significant growth prospects, a strong brand identity and a proven in-house creative capability. It prefers companies with international expansion potential, diversified revenue streams, a clear direct-to-consumer (DTC) strategy and a profitable retail presence. In addition, the company seeks partners with sustainable growth plans, including the ability to expand into new markets and channels, with a focus on retail and digital development. Style Capital values companies that prioritize sustainability and have a strong commitment to social and environmental responsibility.
Its approach involves an investment horizon of around 4 to 6 years, depending on the business plan. The fund can carry out both majority and minority transactions: expansion capital (capital increase), replacement capital (purchase of shares) and leveraged buy-out with low leverage levels.
From an objective point of view, one of the most successful case studies Style Capital has carried out in recent years is a company founded in a small town in Venice, Marghera, inspired by traditional Venetian craftsmanship: Golden Goose SR. In 2013, Style Capital invested in Golden Goose SR through a leveraged buyout strategy. Style Capital contributed with its expertise and resources and helped the company grow its women's and men's accessories and apparel business. Under Style Capital's leadership, Golden Goose SR's EBITDA increased from €5.7 million to €18 million within two years, while sales increased from €21.4 million to €76 million. The company expanded its geographic reach through international markets, developed its e-commerce channel and opened 13 mono-brand stores. Style Capital also supported Golden Goose SR in diversifying its product offering, launching new lines such as Denim and HAUS and introducing pre-collections. These initiatives strengthened the company's brand identity and customer loyalty. This outstanding financial performance resulted in a remarkable 4.6x return on invested capital and an internal rate of return of over 99%, demonstrating the significant value of the investment.
?Golden Goose SR received a special mention at the 2015 Demattè Private Equity of the Year Awards, recognizing Style Capital's outstanding investment acumen. The company achieved elite status on the Borsa Italiana, consolidating its position as a leading player in the fashion and retail industry.
Tune in next time for more!
Yours,
The Debrief Team
BS4F, active since 2013, is one of the leading fashion associations with the mission of bringing students closer to their professional career aspirations in the fashion and luxury world.
BSc International Economics and Management | Università Bocconi
2 个月Well done guys ??