Xiamen-based Apparel Firm Xinhe Secures Funding from PE Fund L Capital

Xiamen-based Chinese apparel firm Xinhe Fashion Co.,Ltd. has secured funding from private equity (PE) fund L Capital Asia, a subsidiary of multinational luxury products company LMVH.
The funding would be the first investment by L Capital in China. It is expected to give a boost to Xinhe's clothing brands and help them improve quality and go global at a quicker pace.
In addition to funding, both firms would cooperate in intellectual property protection in the global apparel sector.
Xinhe, founded in 1992, currently has six brands catering to various market segments. It also has special departments to keep a watch on the market, especially to oversee trademark infringements and take legal action if necessary.
The company's products are geared to middle and high-end markets and it has more than 600 franchisee-run stores in China.
In 2011, Xinhe earned 2.8 billion Yuan (US$ 443.8 million) in sales.
L Capital Asia, founded in 2010, focuses on emerging Asian markets like India and China and covers a wide range of sectors. It chose Xinhe due to its increasing sales, wide distribution network and strong awareness about intellectual property protection.
It took over a year of negotiations for the two parties to arrive at an agreement on private equity funding and strategic cooperation.
Xinhe said the partnership with L Capital Asia would be mutually beneficial to both companies as the growing purchasing power of Chinese consumers would increase demand for high-end garments and luxuries.
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