The Italian fashion house Valentino Fashion Group that operates in over 90 countries with 700 single-brand boutiques could soon be owned by the Qatari royal family. The Qatari royal family would be making the purchase from Permira, a London-based private equity firm for about £550million ($852 million) and the official news of the acquisition could be announced as early as this week if the discussions are finalized. Permira is also noted to have acquired a controlling stake in German company Hugo Boss (also part of the Valentino Group earlier) in 2007 and 100 per cent stake in Valentino Fashion Group.
The recent economic downturn has majorly affected the luxury good producers who are struggling to maintain sales momentum. Qatar has established a track record of buying so-called ‘trophy assets’ with its vast financial resources, however, the current acquisition is being made by Qatar’sroyal family and not the country’s sovereign wealth fund.