Former Spice Girl Victoria Beckham has received a £30m ($40m) investment from private equity firm Neo Investment Partners to help fund her fashion empire, valued at £100m.
Neo Investment Partners’ chief executive David Belhassen, a former Goldman Sachs banker who ran Paul bakery until 2010, announced plans to take an undisclosed stake in Beckham’s business in exchange for the investment.
Timeline for Retail revolution
- September 20, 2019
Beckham, who has known Belhassen for some time, said:
I started my brand from a small room in Simon Fuller’s office with him and David believing in me and supporting my vision. I now have an additional partner who is showing that same belief.
Neo, which specialises in investments in the European luxury sector has invested in British homeware brand Tom Dixon and menswear retailer AMI Paris.
Beckham, 43, said she would use the money“to enhance our digital and physical retail presence and drive growth in our core categories while expanding into new categories to realise the brand’s full potential”.
Beckham launched her brand in 2008 alongside her football star husband David Beckham and the former Spice Girls manager Simon Fuller.
The brand has since expanded from a ready-to-wear line to include accessories, footwear and eyewear.
Beckham has also collaborated with US retailer Target and the cosmetics brand Estée Lauder.
Earlier this month, Beckham announced that her new range with sportswear Reebok would launch next year.
For the past two years, revenues at Victoria Beckham have been around £36m.
In 2015 — the last year for which accounts have been filed — the company reported a pre-tax loss of 4.3m, but expects revenues for the first half of the 2017 financial year to reflect “double-digit growth on the year”.
It is expected that some of the cash from the Neo investment will go toward paying down the Beckham fashion brand’s accumulated debt.
2018 promises to be the most exciting year yet, with the 10th anniversary celebrations and move into new premises. This is a hugely positive time for Victoria Beckham. The continued growth and potential has never been so dynamic.