LVMH Moët Hennessy Louis Vuitton announced on Friday it has set up LVMH Luxury Ventures, a subsidiary for the purpose of investing in emerging-stage fashion, cosmetics or accessories companies. The venture, which will fall under the umbrella of the Paris-based conglomerate – which owns Louis Vuitton, Givenchy, Celine, Marc Jacobs, and Loewe, among others – will be headed by group deputy-head of mergers and acquisitions Julie Bercovy. It will buy stakes in luxury companies with sales of between 2 million and 5 million euros ($5.4 million) and that show high-growth potential.
The venture will have starting capital of 50 million euros, while the overall size of the investment allocated to each company will range from 2 million euros to 10 million euros, according to Reuters. "The aim is to accompany financially the development of these small nuggets to create value," an LVMH spokesman said on Friday.