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I would say Permira is probably among the PE firms which have a good track record with fashion-related deals. From the top of my head can't think of another fund with comparable experience. I generally think high street fashion is a difficult PE investment due to seasonality/collection-risk. Obviously not a general rule and great brands can be more stable but something to consider.

 
EuroLocust

I would say Permira is probably among the PE firms which have a good track record with fashion-related deals. From the top of my head can't think of another fund with comparable experience.
I generally think high street fashion is a difficult PE investment due to seasonality/collection-risk. Obviously not a general rule and great brands can be more stable but something to consider.

Why is seasonality a factor for PE firms? they hold on to the companies for longer periods (somewhere 5 years?)so it should not be a big concern as you look at it as a 5 years investment. I would like to hear more about it though.
 

Not seasonality in the sense of "in summer you can't sell umbrellas" but if you're a high fashion label with 4 collections per year (for all 4 seasons) and you miss the taste of your client base for one season, your sales can drop significantly and you miss your budget. If you have a few consecutive misses, the whole thing can turn worthless. So if you're Armani or D&G, there will likely still be enough people to buy your products but if you're a relatively new brand, things can turn sour fairly quickly - especially if you put an aggressive capital structure in place.

 

L Capital (Europe and Asia). very fashion, retail etc oriented. They don't do real high fashion but more aspirational (at least in Asia).

I used to do Asia-Pacific PE (kind of like FoF). Now I do something else but happy to try and answer questions on that stuff.
 

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