PARIS — Mode et Finance, a French venture capital firm managed by CDC Entreprises, has taken a minority stake in Bouchra Jarrar, the Paris-based label whose luxury ready-to-wear is shown during couture week.
Mode et Finance (Fashion and Finance, in English) specializes in long-term investments in small- and medium-sized companies in the fashion and luxury sectors that are profitable, generate revenues of at least 500,000 euros, or $650,000 at current exchange, and show strong potential for international growth.
Though it declined to specify the size of its stake in Bouchra Jarrar, a spokeswoman for Mode et Finance said investments usually total between 400,000 euros and 1.5 million euros, or $520,000 and $1.9 million. It has a total financing capacity of 10 million euros, or $13 million.
Brands that have benefited from the company’s financial investment in the past include Maison Martin Margiela, A.F. Vandevorst, Anne Valérie Hash and Polux.
The investment will allow Jarrar to grow her team, which consists of just herself and commercial director Delphine Caucé-Marfaing. The plan is to hire an additional two people initially, in the hope of increasing this number to five, Caucé-Marfaing said.
“The ideal would be to have our own atelier,” she said, noting that Jarrar is her own production manager and that made-to-measure pieces are outsourced. Caucé-Marfaing also hopes to increase the number of points-of-sale where the brand is carried from 35 at present, though she said it was too early to set precise targets for 2012.