L Capital expands China portfolio with $2b investment
L Capital Asia, the private equity unit of multinational luxury giant LVMH, has reportedly purchased a 10% stake in China fashion company Ochirly for US$2 billion. It is another indication of the brand’s ambition to expand its portfolio in the world's second-largest luxury market.
The deal will help LVMH to target mid- to high-end consumers in China, with the hope to deepen its understanding of the mainland market, The South China Morning Post reported. L Capital did not respond to questions from AVCJ.
Founded in 1999, Ochirly is a mid-priced domestic brand that targets white-collar females and students. It set out 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 LVMH supported Xinhe Fashion by increasing its investment 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 first mainland investment by the L Capital.
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.
More on Consumer
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.