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