L Capital backs Chinese clothes maker Xinhe

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 first mainland investment by the L Capital.
The deal was reached after more than a year of discussions between the two parties. The funding round closed last October.

Xinhe was founded in Taiwan in 1992 and has now developed six brands, namely JORYA, JORYA weekend, GIVH SHYH, ANMANI, CAROLINE and AIVEI. Its intellectual property protection awareness, expanded distribution channels and growing sales prompted L Capital to initiate the deal, Luo Yonghui, general manager of the company, told China Daily.

The strategic partnership will allow LVMH to make good use of Xinhe's store network for better market penetration. In return, the well-known international brand will help build Xinhe's reputation.

"As the purchasing power of Chinese consumers is growing for high-end garments and luxuries, the collaboration with LVMH, the world's largest luxury goods group, is mutually beneficial," Luo said to local press.

Founded in 2010, L Capital has been seeking to expand its Asian retail-focused portfolio. Last April, the firm launched an Asian fund, which focuses on the wider lifestyle and services sector. After that, the fund purchased an 8.61% stake in Hong Kong-based Ming Fung Jewellery Group through a PIPE investment.

L Capital‘s portfolio companies also include Indian fashion retailers Genesis Colors, Hong Kong listed Emperors Watch and Jewellery and Singapore-based shoe brand Charles & Keith. The fund manages $635 million of capital.

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