Style Capital, a specialised fund focusing on investments in the Lifestyle, Fashion, and Luxury sectors, is exploring the potential acquisition of Farfetch’s New Guards Group, as revealed by Roberta Benaglia, the founder of the Italian private equity firm. While discussing this potential merger and acquisition at the MSGM men’s fashion show in Milan, Benaglia expressed caution due to the complexity of the negotiations involving multiple major parties.
New Guards Group, whose future is uncertain following the rescue of its parent company Farfetch by Coupang, boasts a portfolio of 10 international brands, including Marcelo Burlon County of Milan, Palm Angels, Unravel Project, Heron Preston, Alanui, Peggy Gou, Ambush, and There Was One. It also holds the license for Off-White and serves as the European partner of Reebok. LVMH Moët Hennessy Louis Vuitton acquired a majority stake in Off-White LLC in 2021.
Style Capital’s diverse portfolio encompasses the Los Angeles-based denim brand Re/Done and Italian labels Forte and MSGM. In 2021, the fund invested € 130 million to acquire a 40 per cent stake in Florence-based multibrand e-tailer LuisaViaRoma. Additionally, Style Capital signed an investment agreement last September to acquire a majority stake in the French brand Soeur.
The fund’s recent divestment includes selling a majority stake in Zimmermann to Advent in August, while maintaining a significant minority holding. Style Capital initially acquired a 70 per cent stake in Zimmermann in late 2020. Previous investments range from Twin-Set and Sundek to Damiani and Golden Goose.
As per the fate of Farfetch’s assets, such as Browns, Stadium Goods, and its US $ 200 million stake in Neiman Marcus, remains uncertain. Ongoing discussions with potential buyers regarding Browns are reported. Coupang injected US $ 500 million in emergency funding into Farfetch in December as part of a “pre-pack” administration process, ensuring the continued provision of exclusive brands.
Coupang, a Fortune 200 company listed on the New York Stock Exchange, collaborated with Greenoaks Capital in the investment and operates in various markets, including South Korea, Taiwan, Singapore, China, and India.
