Made in Italy Fund Invests in Building a Fashion Group – WWD

MILAN — Italian companies are exploring new partnerships, improving their supply chains by acquiring specialized manufacturers. At the same time, money-rich funds are increasingly active, knocking on the doors of entrepreneurs who wouldn’t have considered letting them in last year. One way is to propose a common goal and focus on developing a specific project — the foundation of each acquisition, says Mauro Grange, partner of the Made in Italy Fund, which is managed by Quadrivio and Pambianco and invests in wine, food, beauty, fashion and furniture.

Grange should know, as the fund has invested in 10 Italian companies, six of which are in fashion, from 120% Lino and Rosantica to Dondup and GCDS, and, most recently, majority stakes in footwear brands Ghoud and Autry. Former Gucci and Golden Goose chairman Patrizio di Marco was also an investor in the Made in Italy Fund and was appointed president of Ghoud and Autry.

Grange also holds the role of chief executive officer of a business entity called Fine Sun, which combines the above-mentioned brands, with the exception of GCDS, which operates independently. A 100 million euro business, Fine Sun has a 25 percent margin on earnings before interest, taxes, depreciation and amortization, Grange said.

“After 120% Lino, I don’t aim to build the group through industry synergies, but rather through positioning, communication, marketing and commercial synergies under central control that will give the company a single vision without overturning it,” said Grange.

A friendly and well-spoken executive and entrepreneur, Grange strongly believes in specialization. For example, after 120% Lino, a leader in linen and natural fiber clothing, the funds invested in accessories brand Rosantica, and Dondup, which manufactures denim clothing. She described Autry and Ghoud as the “cherry on the cake” of the group, which she believes is responding to the growing demand for elegant sportswear. “Business is difficult if you are not specialized; we have to try to be the best in one category.”

Grange revealed that he was eyeing another Italian clothing company, which he declined to disclose. Asked how he chose investments, he said “attractive products” were the first key element. “I’m always on the go, and very curious. I’m intrigued when I see a genuine product, not a bad copy of something else. Consistent history is also a draw.”

Ghoud’s sneakers.
courtesy image

The fund aims to develop brands globally to create value, and Grange underlined that no acquisition has ever been made through leveraged purchases. “That’s not how we work,” he said.

He also believes entrepreneurs are now more open to investors like the Made in Italy Fund, which has already secured 300 million euros, because they want to be helped and not just sell their companies. “We were able to get them the right managers, and grow their business together, working within their company, and we were in no rush.” She believes this way of working is even more important in the nuanced fashion industry, which is a “sustainable start-up. Every season is a start and not only can you funnel money into these companies, it’s a connected circular world and you can’t ignore any phase.”

The goal is to maintain the brand, cooperate with the existing owner or management. “I’m not getting into a deal to give orders, that’s not my goal,” Grange said. “We want to help them by providing them with the vision and support to make bold decisions they might not otherwise have made on their own. Very often, company founders need to see things from a different perspective and we offer an outside point of view.”

For example, the fund helped Rosantica open a store in the US and the brand plans to launch a flagship on Milan’s Via Spiga between mid-October and mid-November — a move Michela Panero, who founded the company in 2010, was reluctant to take. himself, said Grange. The same can be said for 120% Lino, whose business was more local and Europe-centric prior to the acquisition. “We opened five stores in the US despite the pandemic and doubled their revenue since 2019. We are helping [founder] Alberto [Peretti] with an optimistic boost, while taking some risks,” Grange observed.

He strongly believes in the American market, where 120% Lino has 11 directly operated stores, and is available in major department stores, from Saks Fifth Avenue to Nordstrom. The company reports more than $1 million per month in retail sales in the US “120% Lino has grown outside of Italy because 90 percent of its revenue now comes from foreign countries, and of this, the US contributes up to 75 percent.”

He prided himself on the “very strong US structure and organization” and the two-story New York showroom, which made it possible to showcase all of the group’s brands. “This is the synergy we believe in,” he said. “Having international feedback is critical, and 120% Lino is deeply influenced by the relationships we build in the US, refining shapes and volumes to cater to American tastes while staying true to the brand.”

This is the key to Grange. He would never distort the Autry brand, which is known for its comfortable sneakers with “a distinctively American shape and the US flag”, with oxfords, for example.

He acknowledged there were certain complexities with the development of Dondup, which was acquired in March from L Catterton. “The denim category is crowded and more complicated to stand out, but I’m working on it, listening to customers and the distribution chain. Dondup was born as a denim brand and has built an ecosystem of small producers with specialty washes.”

Previous owners have worked to build a total look collection and while Grange doesn’t want to abandon the effort completely, he believes in focusing on the denim component “with fashion and innovation in mind.” He does not deny that producing denim can be very polluting, and underlined that he is working with CEO Matteo Anchisi to find alternatives for the future, investing in sustainable fabric research, partnering with Candiani, for example.

“You have to do the right thing, research the right ingredients and the right trends because that’s what customers expect from you,” concludes Grange.