Valentino Fashion Group Bought for $858M by Qatar Monarchy

Valentino, owned by the Permira private equity group, has just been bought by Mayhoola for Investments, an investment vehicle backed by the royal family of Qatar. Terms of the deal with the Middle Eastern monarchy were not disclosed, but the sale is estimated to be around 700 million euros, or $858 million at current exchange rates.

According to WWD, Valentino’s chief executive officer Stefano Sassi stated that the brand’s shareholders were impressed by the buyers’ “level of ambition and strong desire to further develop the label.  They took control not only of the brand, but also of the projects behind it.” Mayhoola is looking forward to backing the management in their continued growth since Permira took over the brand in 2007 and ultimately turn Valentino into "a global luxury goods powerhouse."

The Emir of Qatar, Sheikh Hamad bin Khalifa al-Thani, and his wife Sheikha Mozah

For all the political turmoil in the Middle East, it certainly does love its fashion. A number of other investment vehicles have acquired stakes in the luxury and retail world. For example, Qatar Holding LLC took control of Harrods for a reported $2.22 billion in 2010 and also has a 1.03 percent stake in LVMH Moët Hennessy Louis Vuitton and a 5.2 percent share in Tiffany & Co. With such financial backing of the luxury sector, if rethinking our political strategy in the Middle East didn't peak your interest before, perhaps it does now.