LVMH Moët Hennessy Louis Vuitton is best known for fashion, leather goods, wines and spirits. Yet through its Asia-focused private equity arm, L Capital Asia, it also put money into five Singapore names: Crystal Jade, Ku De Ta, Charles & Keith, Heng Long Tannery and Sincere Watch & Jewellery.
The arm was set up with a war chest of US$650 million, which was raised to US$1 billion by 2014. That year a trade outlet reported that LVMH expected to put 45 to 50 per cent of the fund into China. Here is how each Singapore deal looked at the time, and what is confirmed since.
Crystal Jade (2014)
A Chinese restaurant group looked an unlikely fit for a luxury house. In 2014, L Capital Asia signed a deal for more than 90 per cent of Crystal Jade for an undisclosed sum. Local press put the deal at US$100 million, though a Crystal Jade spokesperson dismissed that figure as inaccurate.
The group then had more than 130 outlets across 10 countries in Asia. L Capital’s managing director Christina Teo, who led the deal, spoke of franchising and more joint ventures. She named the United States, China, Southeast Asia and the Middle East as targets.
Crystal Jade says it was founded in 1991. It describes itself as a Singapore-based culinary brand with one MICHELIN star in Singapore and several Bib Gourmand awards in Hong Kong and Shanghai. Standard Chartered Private Equity announced its own investment in the group in June 2015.
Ku De Ta (2014)
In January 2014, LVMH bought a 51 per cent stake in the holding company of the Marina Bay Sands nightclub and restaurant. Industry estimates put the deal at more than S$100 million. L Capital’s managing partner then described plans for a Hong Kong outlet in Lan Kwai Fong, sites already secured in Thailand and France, and a target of lifting revenue from S$50 million to S$200 million within four years.
A marketing trade outlet later noted that the brand is now called Ce La Vi.
Charles & Keith (2011)
In 2011, the Wong brothers sold a 20 per cent stake to L Capital Asia for more than US$30 million. The deal valued the footwear label at almost S$200 million, and the company said at the time that it wanted to draw on LVMH’s experience in expanding. By 2014 it ran about 70 outlets in China and planned to add 30 to 50 stores a year.
The Wong brothers have since bought their shares back from LVMH. By 2022 the chain had expanded across more than 30 countries with about 700 stores.
Heng Long Tannery (2011)
Founded in 1947, Heng Long had supplied exotic crocodile skins to fashion houses for decades. It came into the spotlight in 2011, when LVMH bought 51 per cent of the listed company, valuing it at S$160.8 million. Speaking in 2014, its managing director said LVMH’s backing helped him secure advance contracts with crocodile farmers and stock deeply.
Sincere Watch & Jewellery (2009)
In 2009, LVMH was part of a consortium that paid S$112.7 million for the watch and jewellery retailer, giving it a 26.3 per cent interest. Sincere was then Singapore’s second-biggest watch retailer, but it had a rocky few years. It had been sold to Hong Kong-based Peace Mark, which collapsed. A group led by Sincere’s chairman and managing director, together with LVMH, then bought it.
A sixth name
Sephora, LVMH’s beauty retailer, later bought the Singapore online beauty retailer Luxola, which was the sixth Singapore brand LVMH invested in.