By Aimee Chanthadavong
Sports apparel retailer 2XU has received $75 million in capital injection from private equity fund L Capital Asia as part of new partnership.
L Capital Asia, a private equity sponsored by LVMH Moet Hennessy Louis Vuitton S.A. (LVMH), Groupe Arnault and YTL Corporation Berhard has invested alongside the founder shareholders and Lazard Private Equity, which has been a partner of 2XU since 2011, as part of 40 per interest in the performance sports brand.
“We are thrilled to have L Capital Asia as a partner,” said 2XU executive chairman and co-founder Clyde Davenport.
“We believe that its experienced international team will accelerate us towards our goal of becoming Australia's first major global sportswear brand."
As part of the next phase of growth, 2XU and Lazard Private Equity selected L Capital Asia as an equity partner with a shared vision. L Capital Asia will be able to provide 2XU with a valuable consumer markets understanding and access to global markets, through their extensive network and the LVMH Group.
“We firmly believe that the combination of this strong proposition, with our unique approach to performance enhancement across our portfolio companies will help the brand in achieving its full potential as a strong, globally recognised performance sportswear brand," said managing partner of L Capital Asia Ravi Thakran.
Founded in Melbourne in 2005, 2XU has built a scalable, global distribution network that covers more than 50 countries. 2XU has achieved strong financial performance over the past five years with revenue growth in excess of 40 per cent per annum, and is still in the infancy of its growth potential.