LVMH Participation Fund Investment Accounted For A Mystery

< p > L Capital Asia is prudent in investing in China.

As of Monday's latest data, in L Capital Asia has invested in 11 projects, Greater China occupies four seats, but in 2012 China did not see any new investment projects.

According to people familiar with the matter, the private equity fund is still looking for new projects, and the main energy in China is still being used to optimize the projects already invested.

The fund's initial funds raised at the end of 2010 amounted to US $635 million.

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< p > because LP has the world's largest luxury group LVMH (MC.PA), and L Capital Asia has a reputation in China and Asia.

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Below P, how does the private equity fund backed by LVMH become an investment in the private equity fund? Has it become a brand incubator of LVMH like rumour? If not, what role has LVMH played in the middle? The great wisdom has contacted the president of the Xiamen Xin he Limited by Share Ltd, the first enterprise invested by the fund in mainland China (hereinafter referred to as "Xin He"), Luo Yonghui, and analyzed the investment path and operation strategy of the fund.

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< p > < strong > marriage LVMH, providing "growth" investment < /strong > /p >

< p > private equity fund L Capital Asia and Xiamen Xin he Limited by Share Ltd (hereinafter referred to as "Xin He") to create a parity fashion brand QDA landed in Harbin on the 19 day.

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< p > speaking of acquaintance with Huang Han Ji, managing director of L Capital Asia Greater China, Luo Yonghui, President of Hsin Ho, is still alive to the point.

"We met by chance at a retail forum," he said. "It took more than 8 months from acquaintance to cooperation agreement."

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"P >" because of the shareholding system reform, many investment funds have come to negotiate.

He hopes to introduce strategic investors and provide experience guidance and strategic direction for industrial development.

L Capital Asia, who has a senior retail background, is also happy to help companies, "Luo Yonghui said.

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In this way, L Capital Asia, founded in 2009, completed its first investment in Asia, a target= "_blank" href= "http://www.91se91.com/" and "dress /a" in October 2011, and took the first step toward the mainland market in P.

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< p > soon, L Capital Asia has provided help for the company management.

Luo Yonghui said: "under the rapid development, Hsin ho needs to readjust in management, and the lack of some positions in the development has made the company feel a crisis.

L Capital Asia helps improve management and achieve more performance for the company. "

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< p > in the establishment of channels, L Capital Asia has been boosted by the powerful platform and relationship network behind LVMH to help Hsin ho complete the entry of high-end luxury goods stores in China and help establish overseas sales channels.

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< p > Luo Yonghui revealed: "for example, Shanghai's SHANG Jia center L" Avenue ", our Jorya as the only domestic clothing brand stationed.

L '' Avenue brands are all international brands. Jorya's entry is the result of the joint consultation between L Capital Asia and LVMH China headquarters and its real estate department.

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< p > located at the Zunyi intersection of the Xian Xia Road L "Avenue" commonly known as "LV building".

Its developers are Shanghai Li Shi hung Hua Real Estate Development Co., Ltd.

The developer was jointly sponsored by LVMH sponsored real estate fund L Real Estate and Macao tourism king He Hongshen holding Macao tourism entertainment company (STDM).

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< p > L Real Estate is similar to the nature of L Capital. According to people familiar with the matter, "L Real Estate and L Capital are independent from a business perspective, but they are interrelated from within the group."

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Last Friday (12 th), great wisdom visited the L 'Avenue Jorya store. On the coffee table in the rest area, there were two or three new Jorya albums and company profiles.

One of them describes in detail the signing ceremony of Hsing Ho and L Capital Asia, including the guest lineup.

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< p > salesperson of the store said that the style of this shop is more than that of other stores.

In terms of price, the price of a tuxedo dress is about 19800 yuan, and the price of a lace pparent shawl is about 3500 yuan. There is no discount.

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< p > L is still in trial operation. "Avenue itself has fewer customers, and it is on weekdays. There are basically no customers in Jorya shops. Only two or three journalists walk away.

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< p > in addition to L 'Avenue store, L Capital Asia also helped Xin he win the store in the Grande Canale shopping center of Venice people's hotel in Macao.

Luo Yonghui said: "this shop is 800 square meters, basically the largest store in the shopping center, and the location is also very satisfied.

Mr. Huang Hanji and I went to negotiate in person, and got this store from the hands of an internationally famous brand.

Besides, we are also negotiating the shops of Sands Hotel in Singapore.

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Less than P, Luo Yonghui, a co founded fashion brand QDA, is a company that has always wanted to expand.

"At present, the brand of Hsing ho is biased towards high-end, hoping to create a new brand that covers a wider market," he said.

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Huang P, managing director of Greater China, revealed that, in order to launch QDA, L Capital Asia invited a target= "_blank" href= "http://www.91se91.com/", designer Dior, in a former Dior team.

"Chinese enterprises may not understand this person, and he may not be willing to serve Chinese enterprises.

We will help Xin He company to find such resources.

He said.

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< p > QDA Harbin shop is open today.

It is only a month and a half away from the first store opened in Beijing Dongfang Xintiandi.

Hsin ho market operation Department, Miss Tsang told the great wisdom: "next is Chengdu and Shenzhen, Shanghai store plans to open in the second half of the year."

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< p > < strong > LVMH input accounted for a mystery > /strong > /p >

The close relationship between < p > L Capital Asia and LVMH is obviously easy to see, but the proportion of LVMH as L in L Capital Asia has always been a mystery.

Many media have described L Capital Asia as "fund of LVMH group", but Huang Han has said to great wisdom that this statement may come from the misreading of the public.

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< p > indeed, in the L Capital Asia official website or the relevant insider, the LVMH has never disclosed the exact input to the fund.

President Luo Yonghui also signed a confidentiality agreement and refused to disclose.

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< p > some industry insiders have said that LVMH group's internal proportion of L Capital Asia is not large.

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Ravi Thakran, managing partner of "P > L Capital Asia, also revealed in the interview with foreign media that LVMH accounted for no more than 10%.

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< p > "the proportion of 10% obviously can not explain the target of L Capital Asia, directly representing the strategic direction of LVMH group," said Miss Wang, a luxury industry analyst at a domestic institution. "But in order to get more profits, LVMH will definitely make use of its own channel advantages and industry experience to provide help for L Capital Asia."

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Brand incubator < p > strong > LVMH? < /strong > /p >

< p > commented that L Capital Asia is the brand incubator of LVMH.

The fund is looking for "light luxury" or high-end brands in Asia to buy shares at low prices and mature, and then buy by LVMH group.

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< p > but Ravi Thakran, managing partner of L Capital Asia, denied this publicly many times.

He said that in order to avoid suspicion, L Capital Asia would not trade with LVMH.

He said, "we will never buy anything from LVMH, nor will we sell anything to them."

Daniel Piette, President of L Capital, has repeatedly stressed that shares of brands, including those traded in Asia, will not join the luxury group of LVMH group.

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Like P L and Capital Capital, LVMH group is also listed in LP list of L Capital.

The private equity fund was established in 2001, focusing on the European market and its headquarters in Paris.

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< p > according to public information, up to now, LVMH has not traded directly with L Capital or L Capital Asia.

In February of this year, L Capital plans to sell shares held by SMCP group in 2010, including three private equity funds Carlyle (CG.O), KKR (KKR.N) and Eurazeo (EURA.PA), and Hongkong Pacific Limited by Share Ltd (0019.HK).

There are no LVMH related stakeholders.

As of press release, L Capital's holdings of SMCP group have been successfully acquired by KKR, a private equity fund.

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As a result, it seems that the possibilities for L Capital Asia's brands such as Jorya, Ou Shili (Ochirly) and Louis Vuitton to become the same as Louis Vuitton are unlikely.

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< p > Ravi Thakran has also stressed that when sharing the investment experience with LP, it will not "bias" LVMH, and all LP will get the same information.

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< p > < strong > nearly half of the funds were invested in China < /strong > < /p >.

< p > up to now, L Capital Asia has invested 11 enterprises in Asia.

Ravi Thakran said that more than 70% of the $635 million raised in December 31, 2010 had been rehoused.

Nearly half of the investment is in China, about 20% in India, and the rest in Southeast Asia.

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< p > since September 2010, the fund has invested four companies in China.

Among them, two are Hongkong jewelers 0887.HK and 0860.HK, and the other two are apparel manufacturers in China, Hin Ho and Hechi international group.

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< p > according to public information, L Capital Asia has become the second largest shareholder of Higa apparel by injections of capital.

Through the joint venture CITIC fund, it bought a 10% stake in Heji International Group for $200 million.

Both companies have plans for future listing.

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< p > L Capital Asia is not clear about exit time.

According to government officials, the average period is about four to five years.

L Capital Asia's stake in September 2010 has been partially withdrawn.

Two garment manufacturers in mainland China were both listed in 2011.

Luo Yonghui set the harvest period of the brand QDA that he joined with L Capital Asia in 5-10 years.

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< p > L Capital Asia announced an investment on Monday (15 th), making an estimated price of about 52 million Australian dollars to acquire Australian brand R.M. Williams 49.9%.

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