Home Fashion Style Capital’s Francesca Grosso Reveals Mind-Blowing Investment in Soeur – You Won’t Believe What Happened!

Style Capital’s Francesca Grosso Reveals Mind-Blowing Investment in Soeur – You Won’t Believe What Happened!

Style Capital’s Francesca Grosso Reveals Mind-Blowing Investment in Soeur – You Won’t Believe What Happened!

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Oct 24, 2023

Italian fund Style Capital acquires majority stake in French brand Sœur

Italian fund Style Capital, formerly known as DGPA, has acquired an 80% stake in the French ready-to-wear brand Sœur. After selling its majority stake in Zimmermann, Style Capital focuses on investing in premium and luxury fashion brands. Francesca Grosso, the director of the fund, discusses the growth potential of Zimmermann and Sœur in an interview with FashionNetwork.com.

Exploding Valuation: Zimmermann’s Success

Francesca Grosso explains the extraordinary growth of Zimmermann, which went from a valuation of €300 million to over a billion euros in just a few seasons. Despite being a minority shareholder now, Style Capital continues to support Zimmermann as the brand expands internationally. Grosso attributes Zimmermann’s success to its rapid growth, especially in Europe, during the COVID-19 pandemic.

The Magic Formula: Sœur’s Potential

Grosso discusses the investment in Sœur, highlighting the brand’s unique positioning and its strong appeal to contemporary customers. With its focus on quality and design, Sœur has already established a strong presence in e-commerce and is performing above the sector average in France. Style Capital plans to further expand Sœur’s international footprint, particularly in England, Spain, and other markets in Asia and the Middle East.

Balancing Distribution Channels: Retail, Wholesale, and Digital

Grosso emphasizes the importance of an omnichannel approach, working on retail, wholesale, and digital aspects for all their portfolio brands. Sœur already has a strong presence in digital and retail, but Style Capital aims to help the brand expand outside of France and increase its wholesale presence. The company sees potential for multiple store openings in London and is exploring opportunities in other countries.

Growth and Creativity: Key Factors in Investments

Grosso discusses Style Capital’s investment strategy, emphasizing the importance of strong design teams and growth potential in creativity-driven companies. The fund takes a flexible approach to investments, considering the specific needs and plans of each brand. Style Capital’s recent investments are increasingly international, leveraging their understanding of European consumer habits.

Future Plans and Funding

Style Capital is in the process of finalizing its investments in Zimmermann, Sœur, and U-Power. The fund recently completed the financing of its second fund with €280 million. Grosso points out that Style Capital remains open to new opportunities but currently has no other deals in the pipeline for the next six months.

Market Outlook and Competition

Grosso notes a decrease in competition in the fashion industry investment market, with generalist funds shifting their focus to other sectors. This has led to lower valuations, benefiting funds like Style Capital. However, financing remains a challenge for some fashion and retail projects due to banks’ hesitation. Grosso highlights the improvement in the situation over the past six months.

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