By FashionUnited Group
Updated: 2011-08-10 22:45:03 0ShareLVMH´s private equity fund to operate in Asian markets, L Capital Asia, has made its first investment in India: 25.5% stake in Genesis Luxury Fashion with an option to acquire additional stake in the next one to three years.
“This is the first investment by L Capital Asia in India. This transaction was interesting because there were existing private equity investors in Genesis Colors Pvt. Ltd who had to be made a part of the discussions as the exit rights of such investors had to be aligned with the exit rights of L Capital Asia,” explained peaking on the transaction, Partner Akshay Chudasam of JSA in a statement.
In the same vein, Ravi Thakran, managing partner of L Capital Asia highlighted “We are very pleased to announce our first investment in India. The management of Genesis Luxury Fashion has shown tremendous growth over the past few years and established successful partnerships with global luxury brands. We are now extremely well-positioned to capture the growth of fashion that India is going to see. We hope to expand our portfolio of investments very rapidly here.”
Genesis Luxury Fashion is a subsidiary of Genesis Colors Pvt. Ltd and is in the business of marketing and distribution global luxury brands such as Jimmy Choo, Canali, Paul Smith and Bottega Veneta in India. L Capital Asia and Genesis Luxury Fashion Pvt. Ltd are also in the process of setting up a joint venture company in the same field.
“Apart from the capital infusion into our business, we will gain immensely from L Capital’s vast global network and knowledge of the luxury and premium brands business. With the fund’s strong focus on consumer brands, lifestyle concepts, beauty and wellness, this association will be a catalyst for our plans to foray into the premium and fast-fashion brands business,” said Sanjay Kapoor, managing director of Genesis Luxury.
According to VCCircle, Genesis Colors owns luxury fashion labels like Satya Paul and Bwitch!. The company raised Rs. 80 crore in private equity funding from Henderson Equity Partners in 2009 while its other backers include Sequoia Capital India, Mayfield Fund and Silicon Valley Bank.
As published in financial media, the Mumbai office of Amarchand Mangaldas advised Genesis Luxury Fashion with a team led by Partner Tushar Mavani, while J. Sagar Associates advised L Capital Asia with a team led by Partners Akshay Chudasama and Manisha Kumar along with Senior Associate Aditi Garg and Associate Roopal Kulsrestha. Finally, the Delhi office of S & R Associates advised the existing PE investor Henderson Equity Partners with a team led by Partner Rajat Sethi along with Venkatesh Vijayaraghavan and Radhika Iyer.
L Capital Asia has launched a $640 million fund earlier this year, targeting the fast-growing economies of China, South Asia and India. L Capital Asia will invest in consumer brands, lifestyle concepts, lifestyle food & beverage, beauty & wellness, boutique hospitality, media & entertainment and private education. L Capital also has funds sponsored by LVMH in markets like the USA and Europe, where it has invested in companies like Pepe Jeans and Princess Yachts.
Source:FashionUnited Group