Private equity backing transformed Paris-based SMCP fashion group into a global brand, doubling its store numbers in just three years. When L Capital invested in the business in 2010, the company was already known for its creative style through its three affordable luxury brands - Sandro, Maje and Claudie Pierlot - it was present in 9 European markets, employing 1,100 people.
Over the next three years, L Capital helped SMCP grow, taking it to the US and Asian markets and strengthening its European presence. It also improved brand awareness, assisted with the launch of a new accessories line and recruited vital staff. This remarkable growth story led to the creation of 1,700 jobs before L Capital sold SMCP in 2013.
We are proud of the company's strong development over the recent years and would like to thank our shareholders L Capital for their support.
Frédéric Biousse CEO, SMCP
What did the business need?
- Financial, strategic and operational support for European, US and Asian expansion
- Scale and organisational strength to support growth
- Strategic and operational support for expanding into new product lines
- Help to develop branding
How did private equity backing create lasting value?
- Consolidated its French retail network
- Strengthened its European presence (including the UK, Germany, Belgium and Spain)
- Entered the US market, through both department stores and standalone stores
- Launched Asian operations in Hong Kong and China through local distribution partnerships
- Built the brand through press, public relations and advertising campaigns
- Recruited key professionals to strengthen the organisation
What outcomes did private equity investment achieve?
- Opened 342 shops in three years
- Launched first point of sales in the US in 2011
- Launched first point of sales in Asia in 2012
- Created 1,700 new jobs
- Increased revenues and EBITDA* by 222% and 245% between 2010 and 2013, respectively