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 purchasing Permira, a London-based private equity firm, for about £550million ($852 million). The acquisition’s official news 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 a 100 percent 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.