Chimera and Haeres Capital form joint venture to invest in European luxury brands

Private investment firm Chimera Abu Dhabi and private equity investment company Haeres Capital entered into a joint venture to form a common investment vehicle that will acquire European luxury brands.

The new company, ChimHaeres Investment Holding, will initially focus on Italy, France, Switzerland and the UK, the companies said in a statement on Tuesday.

ChimHaeres will target “legacy” and “next gen” brands with “favourable growth profiles” to serve a younger and increasingly more global consumer base, according to Mirian Khalaf, head of private equity at Chimera Abu Dhabi. “The global luxury market has shown remarkable growth and resilience in recent years despite the pandemic and various macroeconomic and geopolitical challenges,” Ms Khalaf said.

“We are confident that our partnership with Haeres will enable us to capitalise on the attractive long-term fundamentals of the industry and establish ourselves as a leading investor in the European lifestyle space.”

The retail sales of personal luxury goods in the Middle East, primarily led by the GCC countries, are forecast to reach $11.8 billion by 2026, growing annually at 6.5 per cent since 2021, according to Alpen Capital.

The GCC economies' growth, the rebound of business confidence in the region with the reopening of borders, easing of travel restrictions and rise in hydrocarbon revenues are expected to drive consumer demand for luxury goods, the report said.

ChimHaeres, focused on aspirational luxury and lifestyle brands with high growth potential, is based in the Abu Dhabi Global Market, with operating entities in Milan and Geneva.

Chimera Abu Dhabi manages a diversified portfolio of companies across industries globally. Its joint venture partner Haeres Capital is a private company founded in 2011, specialising in the acquisition and management of luxury and lifestyle ventures.

ChimHaeres has already completed the acquisition of a majority stake in Italian coachbuilder and car designer Zagato. Simultaneously, it also acquired 100 per cent of French haute couture label Vionnet.

The common investment vehicle has also agreed to buy a majority stake in Fogal, the Swiss fashion hosiery brand.

Additionally, Haeres contributed its majority equity stake in Borsalino, the Italian hat maker, to ChimHaeres. Haeres Capital was the lead investor in Borsalino, whose stylish fedoras and straw panamas are popular with movie stars and celebrities.

“ChimHaeres embodies the shared vision of both Chimera and Haeres to build and manage a multi-brands luxury and lifestyle platform,” said Philippe Camperio, chief executive of ChimHaeres.

The Swiss-Italian financier is also a managing partner at Haeres Capital, chairman of Borsalino's board, according to his LinkedIn profile.

“The partnership will invest in unique European assets applying a proactive management and ownership approach, through dedicated industry experts, to deliver the long-term strategies of each portfolio company,” Mr Camperio said.

Building on its initial investments, ChimHaeres is “on the lookout for investments in strong aspirational brands”, according to the statement.

Given the team's experience and the available capital, ChimHaeres is “ideally positioned to become a key player in the luxury industry in Europe”, Giovanni Maria Rossi, chairman of ChimHaeres, said.