LVMH Luxury Ventures has found its latest investment vehicle: Madhappy.
The investment was recently posted on the LVMH site. No one from Madhappy or LVMH could be reached to comment further.
The Los Angeles-based direct-to-consumer brand was founded in 2017 by brothers Noah and Peiman Raf along with Mason Spector and Joshua Sitt, and its mission is to make the world a more optimistic place. It offers colorful basics for men and women, much of it in unisex sizing. Madhappy, which appeals primarily to an 18- to 30-year-old, is centered around the issue of mental health and it has built an active community through its physical activations, optimistic messaging and celebrity following.
Earlier this year it received a $1.5 million seed capital investment from the founders of Sweetgreen, MeUndies founder Jonathan Shokrian, Rick Caruso’s son Justin Caruso, Thor Equities chief executive officer and Joshua Sitt’s father Joseph Sitt, Amy Levin Klein, founder of College Fashionista, and Alfred Venture Partners.
In addition to Madhappy, LVMH Luxury Ventures, an entity within the Paris-based LVMH Moët Hennessy Louis Vuitton, took a minority investment in Gabriela Hearst in January. It also has stakes in Stadium Goods and L’Officine Universelle Buly, a Paris-based beauty emporium.
According to its web site, the Paris-based company invests in what it believes are “desirable, high-potential brands with clear identities…[and] significant growth potential.” Companies should have revenue of between 3 million euros and 30 million euros and the equity investment range from 2 million euros to 15 million euros, or 5 to 25 percent of the brand’s ownership. It targets companies in fashion, accessories, beauty, wellness, experiential luxury and selective retailing.
Madhappy recently opened a pop-up at 11 Howard Street in New York for the holiday season. It has also operated temporary retail locations on Melrose Place and Abbot Kinney in California, as well as Denver, Miami and Williamsburg, N.Y. Earlier this year, the company said it would use the investment to increase its digital advertising presence, add more pop-ups and hire additional staff.