Coco Chanel founded the iconic French luxury brand Chanel in the early 1900s. After her death, the Wertheimer family took control of Chanel through their investment company. They set up the family office Mousse Partners in the 1990s to manage their wealth, which now totals near $9 billion. Mousse Partners invests across various assets like PE, VC, real estate and hedge funds. They take a long-term approach, having held their stake in Ulta Beauty for 14 years. Recently, they’ve invested in new brands like luxury vegan startup Nature’s Fynd. Their patient capital and vision has maintained Chanel’s exclusivity while allowing it to expand globally.
Chanel was founded by Coco Chanel, but is now controlled by the Wertheimer family
Coco Chanel founded her eponymous brand in the early 1900s, gaining fame for her iconic fragrance Chanel No.5. She owned only 10% of the company initially. The Wertheimer family, who owned the perfume company Bourjois, financed production of No.5 and owned 70% of Chanel. Afterlegal disputes with Chanel, they increased their stake to 90%. Today the Wertheimers own Chanel through holding company Mousse Partners.
Mousse Partners manages the Wertheimer fortune of nearly $9 billion
The Wertheimers set up their family office Mousse Partners in 1994 to manage their fortune from Chanel. Today it invests across PE, VC, real estate, hedge funds and more. Recent investments include food tech startup Nature’s Fynd and Cava. Mousse Partners takes a long-term, patient approach instead of chasing quick returns. For example, it held Ulta Beauty stock for over 14 years before recently selling part of its stake.
The family office invests in luxury brands with a connection to fashion
Many of Mousse Partners’ investments leverage the family’s expertise in high fashion and personal care. They were early investors in online retailers Bonobos, One Kings Lane and Ulta Beauty. Recent startup investments include vegan protein maker Nature’s Fynd and salon booking app Pose. Though risk averse, the family office is increasing exposure to VC to diversify its assets.
Mousse Partners expands Chanel by retaining its exclusive image
The Wertheimers have grown Chanel into a $10 billion brand while retaining its elite image. Unlike other luxury brands, Chanel has a limited product range sold through its own boutiques. The family stays out of the spotlight, avoiding publicity for themselves or major changes to the brand. However, they partnered with Karl Lagerfeld to revitalize Chanel in the 1980s with new designs. This formula has made Chanel one of the few privately held luxury brands left.
The Wertheimer family has maintained their control over Chanel for decades through their family office Mousse Partners. They take a patient, long-term approach to investments in luxury brands and fashion startups. This strategy has allowed Chanel to expand globally while retaining its exclusive image and desirability.