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LVMH sets up new investment vehicle for emerging brands

By Don-Alvin Adegeest

Feb 3, 2017

London - LVMH is cementing its ties with emerging brands and burgeoning fashion businesses, with a new investment vehicle called LVMH Luxury Ventures. In France's Le Figaro broadsheet the company on Thursday published it appointed Julie Bercovy as its deputy head of mergers and acquisitions.

According to WWD the company will hold an initial investment sum of 50 million euros whereby it can invest in early-stage luxury brands with growth potential.

The idea is for LVMH to invest between two million and 10 million euros for stakes of 15 percent to 20 percent in companies in the fields of leather goods, watches and jewelry, accessories, and perfumes and cosmetics, noted WWD.

In January 2016 LVMH joined forces with US private equity firm Catterton to create a consumer-focused investment firm called L Catterton. The company is 40 per cent joint-owned by LVMH and Groupe Arnault, and 60 per cent owned by Catterton’s partners — including its co-chief executives Michael Chu and Scott Dahnke.

“We expect this combination to further our mission of investing in high-growth opportunities in categories with attractive consumer economics,” Danke told the Financial Times at the time, citing “the globalisation of media and technology, combined with increasingly permeable geographic borders” as a strong driver of growth in consumer industries.

Photo credit: Bernard Arnault, CEO LVMH, source: LVMH.com