Lunar Capital enters partnership with Pinco Pallino

Lunar, which normally focuses on control deals in China's consumer sector, will take a majority stake in the joint venture through an affiliate, and will also second certain senior management to oversee the Asian operations. The agreement also includes a minority investment from Lunar Capital in the share capital of Pinco Pallino through a reserved capital increase to support the expansion plan.

Fifty stores under the luxury brand "I Pinco Pallino" are to be opened in Asia over the next five years with flagship stores in China, Hong Kong, Japan, Korea, Macau, Singapore and Taiwan.

The project starts with the 2013-2014 fall-winter collection, which was presented at the Pitti Bimbo fair earlier this month.

Since September 2012, Pinco Pallino has been led by CEO Gaetano Sallorenzo, who has experience in the fashion and apparel industries with Replay, Stuart Weitzman, Calvin Klein and Armani USA.

"I Pinco Pallino gives us an opportunity to address the growing need for higher quality baby and childrenswear products in China and nearby Asian markets," Derek Sulger, managing partner at Lunar Capital, said in a statement. "We intend to leverage Lunar Capital's operational expertise in China by acquiring best-of-breed brands and products originally developed overseas, such as I Pinco Pallino."

The private equity firm already has exposure to the babywear market, having acquired a majority stake in babywear company China Yeehoo Apparel last year.

Opera and Pinco Pallino were advised by the law firm Caffi Maroncelli & Associati and Studio BNC. Lunar Capital was advised by Method Investments & Advisory (London), King & Wood Mallesons (Hong Kong) and Gianni Orrigoni & Partners.

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• Topics
• Investments
• Consumer
• Expansion
• Greater China
• China
• Lunar Capital Management
• Consumer