L Capital Asia buys 40% stake in Genesis

Thursday, 11 August 2011

Private equity firm L Capital Asia has picked up an additional 15 per cent stake in the Sanjay Kapoor-promoted Genesis Luxury Fashion. A short time earlier it had picked up a 25 per cent stake. This means Genesis will get about Rs 100 crores to facilitate its expansion plans like increasing the distribution and retail network and bring new brands into its portfolio. L Capital Asia is backed by the $29 billion global luxury conglomerate LVMH and this is L Capital’s first India deal. The investment in Genesis Luxury Fashion will help the private equity fund tap the country’s luxury and designer wear segment. The investment in Genesis Luxury will be done in tranches and L Capital Asia also plans to form more joint ventures with Genesis for new businesses. It will invest in consumer brands, lifestyle concepts, lifestyle food and beverage, beauty and wellness, boutique hospitality, media and entertainment and private education.

Genesis Luxury Fashion was set up as a subsidiary of Genesis Colors in 2008 for marketing and distribution of global luxury brands across categories like apparel and accessories. Genesis Luxury sells several brands such as fashionable bags and accessories from Tumi, British label Paul Smith, Italian handcrafted luxury from Canali, handcrafted leather bags & accessories by Bottega Veneta, and Jimmy Choo. Its parent company Genesis Colors owns luxury fashion labels like Satya Paul and Bwitch!. The company raised Rs 80 crores in private equity funding from Henderson Equity Partners in 2009 while its other backers include Sequoia Capital India, Mayfield Fund and Silicon Valley Bank. Headquartered in Paris, L Capital focuses on four sectors -- personal care and well-being, personal equipment, home and family equipment and selective retailing. Between 2001-’10, L Capital acquired stakes in 21 firms worldwide all in its core investment sectors, with investment size ranging between 15 million euros and 40 million euros.