LVMH acquires stake in LA streetwear brand Madhappy
By Don-Alvin Adegeest
13 Oct 2019
Luxury Ventures, the investment arm of LVMH, has acquired a stake in Madhappy, a Los Angeles-based streetwear label founded in 2017 by brothers Noah and Peiman Raf and partners Mason Spector and Joshua Sitt.
The collection features basic items such as unisex sweats and t-shirts, designed around its philosophy of ‘local optimism,’ a platform for mental health. The brand characterises its products as “creating exceptional products with their own flair.”
Earlier this year Madhappy attracted the interest of a pool of investors in a seeding round raising 1.8 million dollars. Among the investors are the founders of the Sweetgreen restaurant chain, the founder of intimates startup MeUndies Jonathan Shokrian and the father of Joshua Sitt, CEO of Thor Equities.
So why is a luxury group investing in mental health fashion?
The French group invests only in what it considers “desirable brands, with high potential and with clear identities and a significant potential for growth”. LVMH Luxury Ventures bets on brands with turnover between 3 and 30 million euros and investments of 2 to 15 million euros and are active in the realm of fashion, accessories, beauty, wellness, experiential luxury and retail. According to The Fashion Law Madhappy posted annual revenues of 1 million dollars in 2018. The brand currently operates pop-up stores in Los Angeles and New York.
Announcement of the investment comes as LVMH revealed its third quarter accounts. The Paris-based luxury group led by Mr Bernard Arnault recorded revenues up 17 percent to 13.3 billion euros. LVMH’s fashion and leather goods business group saw a growth of 18 percent in the first nine months of 2019, driven largely by Louis Vuitton and Dior.
Image courtesy Madhappy