KKR invests $30m in China apparel retailer Novo

The investment, which was channeled via KKR's China Growth Fund, has already enabled the company to expand its nationwide store network and pursue licensing agreements with international fashion brands.

"We see enormous long-term growth potential in the Chinese fashion retail industry driven by rising domestic consumption and an increasing demand for the latest fashion trends," said David Liu, CEO of KKR Greater China. "Novo has developed a unique business model with extensive local network and supplier relationships, which enable it to fully capitalize on the rising demand in the Chinese youth fashion market over the long term."

The Chinese youth apparel retail market is a $38 billion industry that has been growing at 16% per year since 2005.

Alan Fang, chairman and CEO of Novo, added that the company chose KKR as its investment partner due to its global franchise and the China team's strong track record in growing retail companies. KKR, meanwhile, was attracted to the strength and retail expertise of Novo's management team.

Novo plans to both develop its brands and grow its number of anchor stores over the coming years.

In addition to Novo, in the past 12 months, KKR has invested in China's United Envirotech, Rundong Auto, China Outfitter, Sino Prosperity and China Cord Blood.

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• Topics
• Greater China
• Consumer
• Expansion
• KKR
• China
• Growth capital
• Consumer