MILAN — Y Capital Management has acquired a 30 percent stake in the Francesco Scognamiglio fashion label.
The deal represents the fund’s latest investment in the fashion business. Previously, Y Capital Management bought a holding in German online fashion company Rocket Internet as well as Spring Studios in the U.K. and U.S.
“This is our first investment in a luxury fashion label and we see great potential in it,” said Y Capital Management founder Johann Young, who added that the fund is set to invest an initial sum of $50 million in the Francesco Scognamiglio brand.
“This investment first of all will be aimed at expanding ready-to-wear,” said Scognamiglio, who launched his brand in 2001. “Then, we are introducing a couture line next July or most probably in January 2016.” Next year, the company will unveil its first online store.
The introduction of a men’s wear line, as well as the introduction of footwear, eyewear and fragrance licenses, also are on Scognamiglio’s agenda.
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“With such a great partner, now I can definitely focus more on the creative aspect of the business,” said Scognamiglio.
The brand, which generates the biggest percentage of its sales in Japan and Russia, is looking to expand in the United States. “Entering department stores is definitely a goal,” Scognamiglio said.
Known for its feminine style and appreciated by celebrities, including Madonna, the Scognamiglio brand wholesales its collections starting from 250 euros, or $279 at current exchange rate, for skirts, to about 800 euros, or $892, for evening dresses. The designer, who manages an in-house atelier, also offers a bespoke service.