A private equity fund backed by LVMH on Thursday unveiled its third strategic investment in Asia as the world’s biggest luxury goods group looks beyond its own brands in China’s fast growing consumer market.
L Capital Asia, a US$500m fund launched last year to invest in the region’s emerging economies, has bought HK$240m (US$31m) worth of convertible bonds and warrants in Emperor Watch & Jewellery. It will have a 6.9 per cent stake in the Hong Kong-based luxury retailer upon exercise of the financial instruments by 2013.
Ravi Thakran, the fund’s managing partner, said it aimed for a five-time return from the investment, which it plans to hold for four to five years. With 30 outlets in China, Emperor plans to use the money to expand on the mainland, where it aims to open 10 to 20 stores annually over the next few years.