Cassia Investments backs buyout of Shanghai Tang

Financial details were not disclosed. Richemont took a controlling stake in the company in 1998 and acquired 100% ownership in 2008. According to an announcement, the investment will result in a global expansion drive.

Founded in Hong Kong in 1994, Shanghai Tang claims to be the first modern luxury brand from China, marketing a range of men’s and women’s clothing, accessories and home decorations that combine Eastern and Western design influences. It operates via 32 boutique outlets, primarily in Asia.

The transaction follows participation by Cassia in a $40 million buy-back of China retail and franchising rights held by clothing company New Elegant Trading (Shanghai), a company backed by Japanese apparel retailer Evisu Group and IDG Capital. Cassia focuses on lower middle-market companies in China and Southeast Asia and closed its debut fund in 2011 at $20 million.

Recent interest in Chinese fashion markets has also resulted in a $397 million Series E round led by JD.com for high-end online clothing retailer Farfetch, which is planning an expansion in the country. According to Daxue Consulting, total fashion sales in China are expected to triple in value by 2020 to more than RMB1.3 trillion ($190 billion).

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• Topics
• Greater China
• Consumer
• Buyouts
• Hong Kong (China)
• Growth capital
• China