PARIS Feb 3 LVMH said on Friday it
had set up LVMH Luxury Ventures, a vehicle destined to invest in
small, promising fashion, cosmetics or accessories companies.
LVMH Luxury Ventures, which will headed by group deputy-head
of mergers and acquisitions (M&A) Julie Bercovy, will buy stakes
in luxury companies with sales of between 2 million and 5
million euros ($5.4 million) and a high-growth potential.
"The aim is to accompany financially the development of
these small nuggets to create value," said an LVMH spokesman.
The venture will have a starting capital of 50 million euros
while the size of the investment allocated to each company will
range from 2 million euros to 10 million euros.
The luxury goods industry is seeing signs of a surge of
emerging fashion brands that are proving popular with young
consumers thanks to social networks.
The Instagram account of Anastasia Beverly Hills, a
California make-up brand distributed by LVMH's Sephora network,
has 13 million subscribers, while Louis Vuitton, the core
division of LVMH, has 14.6 million subscribers.
($1 = 0.9314 euros)
(Reporting by Pascale Denis and Dominique Vidalon; Editing by