L Capital buys Wolfensohn's Fabindia stake

"The deal is done. A formal announcement is expected shortly," one of the two sources with direct knowledge of the matter told Reuters.

Wolfensohn Capital Partners, the New York-based venture capital fund which is owned by former World Bank President James Wolfensohn, acquired its 8% stake in Fabindia for nearly INR500 million ($10.8 million) in 2007. It was first reported last August that the firm was looking to exit its holding.

A number of private equity firms, including Bain Capital, Temasek, The Carlyle Group, Everstone Capital, New Silk Route Advisors, Sequoia Capital and KKR have been linked to the Indian ethnic wear chain. Last November, The Economic Times reported that Carlyle had outbid its rivals to buy a 8% stake in Fabindia through a INR2 billion ($37 million) funding round that valued the company at INR14 billion.

Founded in 1960, Fabinida is well known for its handmade products. Today, the retail company has 141 retail stores across India and one store in each of Dubai, Nepal and Italy.

L Capital launched its first Asian fund last April and has made several investments in brands across the region.

It made its first investment in India in July, purchasing a 25.5% stake in New Delhi-based Genesis, which operates 125 stores and franchises for luxury brands including Just Cavalli, Bottega Veneta and Jimmy Choo. A month later, it was reported to be considering investing a further INR800 million into a joint venture with Genesis which would exhibit the Indian firm's fashion pieces.

In recent weeks, L Capital is said to have committed $200 million to Trendy International Group, a Chinese casual-wear company, and also increased its holding in Xinhe Fashion.

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• Topics
• South Asia
• Consumer
• Exits
• Expansion
• L Capital Asia
• The Carlyle Group
• India
• Consumer
• China
• Exit
• Growth capital