L Capital invests in Chinese fashion company - updated

L Capital Asia has purchased a 10% stake in Guangzhou-based Trendy, which directly owns hundreds of stores and franchises for its four brands, including its largest brand Ochirly, The Wall Street Journal, reported, citing people familiar with the matter.

Hanji Huang, managing director at L Capital Asia, said LVMH would help Trendy to develop its image across its portfolio of brands.

Trendy has 300 directly-owned stores and hundreds of franchises selling its four brands, of which Ochirly is the best known. It is a mid-priced domestic brand that targets white-collar females and students. The original aim was to introduce European styles into the Chinese market and claims to have more than 800 stores in 28 provinces and cities.

The transaction comes a few weeks after L Capital increased its holding in Xinhe Fashion to become the company's second-largest equity stakeholder. The funding of the Xiamen-based fashion company, a high-end retailer which has a sales network of more than 600 stores in premium malls and shopping centers across China, was the private equity unit's first mainland investment.

Founded in 2010, L Capital has been seeking to expand its Asian retail-focused portfolio over the two years. Last April, the firm launched an Asian fund, which focuses on the wider lifestyle and services sector. Some analysts suggest that the conglomerate might eventually acquire the fashion brands in which it has taken a stake.

 

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• Topics
• Greater China
• Consumer
• Investments
• Consumer
• Growth capital
• L Capital Asia
• China