L Capital Asia ties up with K-pop company

L Capital Asia ties up with K-pop company

SINGAPORE- Fashion and music shared the stage yesterday in a partnership deal that looks as good as it sounds.

Singapore-headquartered L Capital Asia, the private equity arm of French luxury group LVMH Moet Hennessy Louis Vuitton, formalised its investment in South Korean talent agency YG Entertainment in a signing ceremony at the Ritz-Carlton hotel here.

Both sides said they are in talks to collaborate in areas that could include fashion, cosmetics and Korean-themed restaurants.

YG artistes such as Gangnam Style singer Psy, boyband Big Bang and all-female group 2NE1 could also be ambassadors for LVMH's stable of brands, which include Louis Vuitton, Fendi and Marc Jacobs.

"Many of our brands are already very excited. We certainly can see some of the artistes collaborating with the fashion brands, being at the fashion week (events)," said L Capital Asia chairman Ravi Thakran.

With the partnership, both parties can diversify into new markets.

This is L Capital Asia's first South Korean investment, while YG is branching out beyond music and entertainment into lifestyle.

"The areas of business that we are diversifying into are closely related to our music, which is the core business," said YG Entertainment chief executive Yang Min Suk, who spoke through an interpreter.

Mr Thakran revealed that L Capital Asia is already looking at other South Korean firms to invest in, including a fashion company as well as in the area of skincare.

It is also likely to announce new investments in an Australian swimwear retailer and a Singapore company as it looks for targets that can tap into Asia's consumer growth story.

L Capital's portfolio includes the Charles & Keith group and Jones The Grocer group.

SIM University senior lecturer Dr Wilson Wong told The Sunday Times that the company seems to be embarking on a strategy of creating a major lifestyle business.

Over the last year, the firm has acquired stakes in upscale club Ku De Ta and restaurant chain Crystal Jade, as well as Australian sports brand 2XU.

"This strategy is targeted at Asia's emerging middle class with their rising disposable incomes," Dr Wong said.

L Capital Asia said last month it would invest a total of US$80 million (S$101 million) in YG Entertainment, giving it an 11.5 per cent interest in the company.

It is now the firm's second-largest shareholder, behind chairman Yang Hyun Suk, who has a 28 per cent stake. Adding Hallyu glamour to yesterday's event were YG artistes G-Dragon from Big Bang, CL from 2NE1 and boyband Winner, who witnessed the signing.

The artistes are part of the lineup in the YG Family Concert being held this weekend at the Singapore Indoor Stadium.


This article was first published on Sep 14, 2014.
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