Montefiore Investment is a France-based private equity firm. It invested in renowned French fashion designer brand Isabel Marant in 2016 by acquiring 51% stake. Recently, there are news that Montefiore Investment is studying options to sell its controlling stake in Isabel Marant. The potential deal could value Isabel Marant at 1 billion euros. This article analyzes Montefiore Investment’s investment in Isabel Marant and the motives behind its potential exit.
Montefiore acquired majority stake in Isabel Marant in 2016
In 2016, Isabel Marant sold 51% stake in her eponymous brand to Montefiore Investment, while Marant herself and two associates retained the remaining 49% shares. Montefiore’s investment marks the first external capital introduced into Isabel Marant. With Montefiore’s help, Isabel Marant has achieved impressive growth in product categories, sales channels and regional markets. For example, it has expanded into men’s collection, makeup, eyewear, watches and even skiwear. It has also accelerated retail network expansion with 68 stores globally now.
Strong growth in China is a key driver behind Montefiore’s decision to invest in Isabel Marant
China plays a vital role in Montefiore Investment’s decision and Isabel Marant’s growth story. Since its first China store opened in 2006, Isabel Marant has achieved explosive expansion there recently. It now has 14 stores in China, with plans to open 4-5 new stores annually. Strong China demand has cushioned Isabel Marant during the pandemic per the brand’s founder. China is clearly a key growth engine that makes Isabel Marant stand out among smaller designer brands and an appealing investment target.
Montefiore Investment is now studying options to sell its controlling stake
In late 2021 and early 2022, there were news reports that Montefiore Investment has mandated investment bank JPMorgan to explore options for the sale of its 51% stake in Isabel Marant. The deal could value the brand at 1 billion euros. After the initial expansion period, it seems that Montefiore Investment is planning for its exit after holding the investment for around 5 years. As a private equity firm, this fits Montefiore’s model to eventually exit from its investments with returns.
In 2016, Montefiore Investment acquired 51% stake in French designer brand Isabel Marant for growth capital. With Montefiore’s help, Isabel Marant has achieved impressive expansion in China, product offerings and retail network. Now after an initial growth period, Montefiore Investment is planning for its exit through a potential 1 billion euro sale deal.