The Paris-based firm divested 8.5 million shares of Moncler through its ECIP M subsidiary. As a result, ECIP M will own 5.31 percent of the shares and of the voting rights of Moncler, and its economic interest in the Italian luxury firm will amount to 4.79 percent of the capital.
The sale generated net proceeds of 188 million euros for Eurazeo.
“The outstanding operating performances achieved, semester after semester, by Moncler demonstrate the solidity and strength of this brand,” said Eurazeo’s deputy chief executive officer Virginie Morgon. “The strong stock market appreciation leads us today to sell part of our shareholding within the context of our dynamic portfolio management,” she said, adding that the investment company is “however convinced of the sustainable attractiveness of this brand and of the talent of its teams which keep extending their horizons, while preserving the unique DNA of Moncler.”
In line with market practice for similar transactions, ECIP M. has agreed to a 90-day lock-up period in respect of the remaining shares in Moncler from the date of completion of the transaction, subject to customary exceptions and waiver.
Goldman Sachs International acted as bookrunner in connection with the placement while Lazard acted as Eurazeo’s financial advisor.
Eurazeo first became a shareholder of Moncler in 2011. In addition to the Italian fashion label, the investment company is also a shareholder in Desigual, Farfetch and Vestiaire Collective, among others.
Speaking of the investment at this week’s WWD Apparel and Retail CEO Summit in Manhattan, Morgon said, “I think when you pick a company which is creating a category, I think you have more chance of making a good return on an investment because you’re defining the category itself. With Moncler, let’s say 10 years ago, it didn’t even exist as a category. More generally speaking, from an investment perspective, being able to pick the category champion or even the leader, the absolute leader and creator of a category, would help a great deal.”
Discussing generally what makes a good investment for the fund, Morgon added, “The question we try to address before we go for it is how long is [the brand] going to last and how sustainable is the growth. But as a start [we use digital tools] to assess how much love the brand has — searching online, searching through social media and these are different tools than we were using even a few years ago. We’re trying to assess whether this is a very strong brand, which helps to get conviction that it is going to last longer.”