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MSGM sells stake, creative director and founder to stay

MSGM sells stake

Style Capital Private Equity has acquired a stake in Italy’s MSGM Srl, the group that owns the luxury fashion label of the same name, MSGM.

Founded by Massimo Giorgetti, the designer and businessman will remain creative and artistic director of the Italian brand, which he kicked off in 2009 with the financial support and backing of manufacturing company Manifattura Paoloni.

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With the value of the deal unknown, Style Capital now owns a 32% stake in the Milan-based brand. Manifattura Paoloni holds a 49% share in the brand, with Giorgetti retaining a 19% minority stake.

Style Capital founder Roberta Benaglia is said to become chief executive officer of MSGM, a role previously filled by Giorgetti.

“The entry of Style Capital into MSGM represents a decisive turning point in the growth of the company,” Giorgetti told the US fashion press.

“I am extremely pleased with this partnership. It not only means having available capital to invest, but also sharing future development plans with a partner that has always carefully preserved the continuity of its companies, enhanced their strengths and human capital, and added the skills necessary to promote their growth. From the beginning of our negotiations with Style Capital, I understood that not only their specific skills, but also their shared vision and their focus on human relations and the promotion of human resources will be fundamental for growing and guiding the MSGM team.”

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With ten boutiques operating in major cities such as Tokyo and Hong Kong, MSGM will use the funding to open more global flagships in 2018. Another 30 MSGM boutiques will be unveiled globally by 2021, pushed on by Style Capital, which currently boasts a 100 million euro brand portfolio.

In 2017, MSGM recorded revenues of 50 million euros. Looking forward, the company expects to post revenues of 60 million euros in 2018, with Asia – notably China, South Korea and Japan — set to generate 35% of the company’s total sales for the year ahead.