Victoria Beckham scores $40 million from Neo Investment
Fashion entrepreneur Victoria Beckham has raised £30 million (US$40 million) from growth equity firm Neo Investment Partners in exchange for a minority stake in her namesake luxury label.
While the terms of the transaction have not been disclosed, market insiders say the deal values the business at £100 million, reports BoF.
“As the business continues to grow, I appreciate the need for external investment which, in turn, would bring external expertise,” says the former Spice Girl. “Neo has shown it can take founder-led businesses with a global outlook to new heights. Our focus is on building a sustainable, profitable luxury brand.”
Neo Investment Partners founder/managing partner David Belhassen says Beckham is an inspiration to millions of women around the world. “She has built a unique, differentiated luxury brand with a strong identity and very high potential.”
Beckham plans to use the funding to expand the luxury womenswear brand’s physical retail and e-commerce presence, as well as drive growth of core product categories.
After a series licensing deals for eyewear, denim and fragrance, Beckham launched her own luxury womenswear line in 2008 with a range of dresses. Initially shunned by the fashion industry, she has since expanded into handbags, eyewear and shoes and currently employs 180 people with stores in London and Hong Kong as well as an e-commerce site.
Beckham teamed with Target last year for a capsule collection, and is now working on a collaboration with Reebok expected to launch late next year. “To challenge the traditional notions of fitness wear within a fashion context is something I have always wanted to do,” she says.
The Victoria Beckham label is controlled by Beckham Brand Holdings, a holding company that also owns the licensing of the former football star’s name. The company is owned by the husband-and-wife team of David and Victoria Beckham as well as Simon Fuller, the entertainment impresario who created the Idol franchise.