Global private equity firm The Carlyle Group has announced a USD20m investment in Ellassay, a high-end Chinese women’s fashion house.
The investment, funded by Carlyle Asia Growth Partners, will enhance Ellassay’s product development, brand building, market expansion, business ties and the overall management. Further financial details were not disclosed.
Since opening its first store in Shenzhen in 1995, Ellassay has expanded to a sales network of more than 280 retail shops across the country and has seen revenue increase by 30 to 50 per cent annually. It was recognised as a top Chinese fashion brand of year 2008 by China International Clothing & Accessories Fair.
Alan Xia, president of Ellassay, says: ‘Our partnership does not merely focus on capital injection, but more importantly, on shared objectives of how to expand our brand, advantageously deploy Carlyle’s resources and develop Ellassay into a sustainable international brand. In times of economic downturn, it is imperative to set sight on our long-term strategic direction and brand positioning in order to sustain and prosper for years to come. ‘
Wayne Tsou, managing director and head of Carlyle Asia Growth Partners, adds: ‘This transaction follows our investments in fast growing domestic branded Chinese consumer companies such as restaurant chain Babela and leading fashion sportswear enterprise Xtep last year. We maintain our confidence in the Chinese consumer and retail market and our commitment to invest in China.
‘Carlyle has accumulated extensive experience in brand building and management in the consumer and retail space, which is a core industry focus of the firm. We look forward to sharing with Ellassay our successful experiences and industry ties in the relevant space. We believe further investment in research, resources, talent, channel development, and information technology management systems are beneficial to growing a high-end fashion brand such as Ellassay.’
