Blackstone pumps in ₹1,750 crore into Future Lifestyle

This is the PE firm’s first investment in the retail fashion segment

Private equity firm Blackstone has invested 1,750 crore into Kishore Biyani’s Future Lifestyle Fashions Ltd (FLFL).

Future Group on Friday announced that the investment, which includes debentures, was made in FLFL’s holding company Ryka Commercial Ventures Pvt Ltd. This means that Blackstone will be the only financial partner in Ryka.

“As a part of the transaction, Blackstone has also acquired a 6 per cent stake in FLFL through a block deal with Ryka,” a statement by Future Group said.

Proceeds of the investment has been utilised to retire all existing financial obligations of Ryka, consolidating FLFL’s encumbrances with one long-term investor.

Speaking about the investment, in a statement, Blackstone’s Managing Director Luv Parikh said that this was Blackstone’s first investment in the fashion retail sector. The private equity firm has been largely investing into the real estate sector. Outside of real estate, it has invested in entities such as Aakash Educational Services, Aadhar Housing Finance Ltd and Essel Propack Ltd.

‘Value added investor’

“We look forward to being a value-added investor as FLFL and the Future Group continue to cater to the fashion needs of aspiring India,” Parikh said.

FLFL’s other stakeholders include L Catterton, Premji Invest and Apollo Global Management.

Kishore Biyani, Group CEO of Future Group, said, “Blackstone will support us in the continued growth of our fashion business, bringing global perspectives that will help us take FLFL to the next level.”

FLFL has a diversified portfolio of 30 fashion brands including such as Lee Cooper, Indigo Nation, Jealous 21, BARE, aLL among others. FLFL serves varied customer segments through 346 stores spread over 7.2 million sq ft comprising company operated chains Central and Brand Factory, EBOs, department stores and multi brand outlets.

For the FY ended 31st March 2019, FLFL generated revenue of 5,728 crore and profit of 189 crore.

In July, Future Lifestyle Fashion had announced plans to raise about 300 crore from AION Capital Partners through preferential allotment of shares.