million private equity fund backed by the world's top luxury retailer LVMH is on the prowl for emerging Asian brands in the hope of transforming them into global names. The L Capital Asia fund has so far spent a total of $90 million on minority stakes in two Singaporean fashion companies and a Hong Kong-listed watch and jewellery company. It is in advanced talks with a fashion-related firm from China and another from India and hopes to make an announcement about the investments in the next few months, said Ravi Thakran, the fund's managing partner. Unlike its parent group LVMH, which concentrates on the top tier of the luxury sector, he said the fund focuses exclusively on promising Asian labels looking for a big breakthrough, particularly in the Chinese and Indian markets. “The primary engine not only for Asia-Pacific, but for the whole world today, is this twin propeller of China and India,” Thakran said. “So we are looking for those smart entrepreneurs who have a great product, very differentiated DNA, something very different in their category.” He said the fund will look at China, India and Southeast Asia, where promising labels would benefit from an extra push from a partner such as LVMH. Paris-listed LVMH is one of the world's most successful luxury retailers, with a portfolio of brands that includes Louis Vuitton, Parfums Christian Dior and Guerlain perfumes alongside Moet and Chandon and Dom Perignon. In 2010 it posted record sales of $30 billion and a profit of 3.03 billion euros, as demand for its high-end products rose among Asia's growing ranks of affluent and brand-conscious consumers. – Agence France
