L Capital Asia, a private equity fund sponsored by luxury goods conglomerate LVMH, made an undisclosed investment in China-based Xinhe Fashion last month (although L Capital’s website dates it in October), according to China-based newspaper China Daily, making LVMH Xinhe’s second largest shareholder. The investment is L Capital Asia’s first on mainland China, its portfolio otherwise consisting of businesses based in Hong Kong, Singapore and India. The fund closed at $635m in December 2010 and has an investment policy focusing on aspirational brands in the Asian market. Xinhe, which made $443m in revenue last year, according to its general manager Luo Yonghui, is based in the mid to high-end women’s fashion market and boasts 600 franchised outlets across China. Xinhe’s clothing output is spread across six brands, each targeting a different demographic. Luo was quoted as saying: “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.”

Subscribe to go deeper

GCV subscribers get access to all our proprietary data and deep-dive articles, as well as the global directory of CVC investors.



Not sure if you have a subscription?