That sale allowed Permira to pay down the debt on Hugo Boss as it reduced its holdings in the German brand, leading to a sale of its remaining stake in 2015. “High fashion in particular was where private equity found its greatest challenges, which was no wonder given global retail economics, and that creative success can be a hit-and-miss business,” Mr. Solca said. Nearly 90 percent of private equity funds had considered an investment in a fashion and luxury asset as part of their 2018 investment strategy, the report said. Consider the likes of the streetwear label Supreme, in which Carlyle made an investment in 2017, and the fashion e-commerce retailer Matchesfashion.com, in which Apax Partners acquired a majority. Contemporary fashion brands with strong omnichannel sales and social media presence like Ganni, Isabel Marant, SMCP and the Kooples have been subject to a recent string of private equity stake building or buyouts.

Source: International New York Times July 10, 2019 18:11 UTC