Temasek Holdings, a Singapore state owned investment firm, has just acquired part of Stone Island.
Stephen Forshaw, Managing Director Public Affairs of Temasek International Pte Ltd, has responded to our email enquiry as to i) how Temasek Holdings came to the decision to invest in Stone Island and ii) the reason(s) behind the company’s interest in fashion – particularly in purveyors of cult brands, in reference to its stakes in Farfetch and Moncler.
An excerpt from the email response reads:
“We see investments like the three you describe in line with general trends supporting the growth of the consumer-related sector, which has been a sector of focus for us. As at our last reporting date of 31 March this year, investments in the consumer and real estate sector made up 17% of our net portfolio value of S$275b (US$197b). Temasek invests around four key themes, including the transformation of economies, the growth of middle income populations, the development of comparative advantages, and emerging champions. Whenever we invest in a company, we look for one or more of these themes to be present to make our investment case.”
The move makes Temasek Holdings the second largest shareholder of the brand, right after the brand president Carlo Rivetti, according to Sportswear International.
“I particularly appreciate Temasek’s investment strategy to participate in companies with strong growth potential, know-how, and identity,” Rivetti was quoted saying in Retail Gazette.
And Stone Island has shown strong growth potential. Last year, the brand saw an increase in sales revenue of 26%. Its collaborations with notable brands such as Supreme, Nike, and Kith have also earned it a strong following.
Of late, Temasek has shown a keen interest in purveyors of cult fashion brands such as e-commerce platform, Farfetch, for which it raised US$110 million in May 2016. In June 2016, Temasek invested in Moncler, an Italian lifestyle brand.
We have reached out to Temasek for a statement, but have yet to receive a response. Check back for more updates.