Survey: For private equity investors, luxury and fashion are still in style

Marcus Baram
Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.

Sep 28, 2023
11 months ago

Amid economic turmoil around the world — marked by high inflation, the Ukraine war and post-pandemic uncertainty — investors might be expected to avoid fashion and luxury.

But they’re still attractive to private equity funds — 80% of which said they would probably, very probably or definitely seek deals in the sector this year, according to a new Deloitte survey. Among the most appealing categories to investors were cosmetics and fragrances (63%), apparel and accessories manufacturing (50%) and furniture (50%).

Overall, global revenue in the sector totaled $730 billion in 2021. Personal luxury goods and luxury hotels are “expected to see particularly strong sales growth over the next three years,” with the Asia Pacific and Middle East regions set to expand the fastest.

Among recent deals: The private equity firm L Catterton recently took a majority stake in Birkenstock and invested in the Swedish hair care company Maria Nila, and Saothair Capital Partners bought yacht designer and builder MJM Yachts.

Marcus Baram
Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.