PARIS — LVMH Moët Hennessy Louis Vuitton has taken a minority stake in Lusix, a producer of lab-grown diamonds, the Israeli firm said.
The French luxury conglomerate’s investment arm LVMH Luxury Ventures was one of several participants in a $90 million investment round, alongside Israeli’s Ragnar Crossover Fund and investment house More, Lusix said in a statement.
In a bid to reduce emissions, the company uses solar power to grow its gem-quality diamonds, which it has trademarked as Sun Grown Diamonds.
“The company will use this investment to fuel its growth initiatives, notably the expansion of its production capacity in Israel with a second state-of-the-art facility, which will commence production this summer,” it said.
The investment comes as lab-grown diamonds, touted as a more sustainable alternative to natural diamonds, are making further inroads into the high jewelry market, against a backdrop of sanctions against Russia, a leading supplier of natural diamonds.
“We are thrilled and proud to welcome such high-profile investors, most notably LVMH Luxury Ventures, bringing their financial support and valuable industry insights,” Lusix founder and chairman Benny Landa said in the statement.
“Their help will contribute greatly to our company’s success while the implications of this investment, both for Lusix and for the lab-grown diamond segment, are profound — and so exciting,” he added.
LVMH Moët Hennessy Louis Vuitton established LVMH Luxury Ventures in 2017 with a mission to take minority stakes in early-stage luxury brands that have high growth potential and compelling business models.
Its first investments were French beauty brand Officine Universelle Buly 1803 and New York-based sneaker reseller Stadium Goods, both of which it has already exited.
In 2019, it took a minority stake in Gabriela Hearst, the luxury womenswear label devoted to sustainability.
Its current portfolio also includes streetwear brand Aimé Leon Dore, skin care brand Versed, apparel brand Madhappy, watch platform Hodinkee, mystery box start-up Heat and social shopping specialist Replika Software.
According to its website, LVMH Luxury Ventures targets companies with revenue between 5 million and 100 million euros, and makes equity investments ranging from 5 million euros to 20 million euros, yielding shareholdings of between 5 percent and 25 percent.