Blackstone makes initial investment in Indian fashion sector
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International private equity firm Blackstone has invested roughly US$244 million in debentures in Future Lifestyle Fashions holding company Ryka Commercial Ventures.
The deal is accompanied by Blackstone’s acquisition of a 6-per-cent shareholding in Future Lifestyle. The firm is now Ryka’s sole financial partner.
“This is our first investment in this sector,” said Blackstone’s head of tactical opportunities, Asia Kishore Moorjani in a DealStreetAsia report. “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.”
The funds have been used to resolve all Ryka’s existing financial obligations.
“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,” said Future Group CEO Kishore Biyani.
Questions & Answers
Q.What is the primary nature of Blackstone's investment in Ryka Commercial Ventures?
What is the primary nature of Blackstone's investment in Ryka Commercial Ventures?
Blackstone has invested approximately US$244 million in debentures in Ryka Commercial Ventures. This deal also includes the acquisition of a 6-per-cent shareholding in Future Lifestyle, making Blackstone Ryka's sole financial partner.
Q.What is the stated purpose of the funds provided by Blackstone to Ryka?
What is the stated purpose of the funds provided by Blackstone to Ryka?
The funds provided by Blackstone have been used to resolve all of Ryka Commercial Ventures' existing financial obligations. This clears the slate for future growth and development of the fashion business.
Q.What does Blackstone's head of tactical opportunities, Asia, expect from this investment?
What does Blackstone's head of tactical opportunities, Asia, expect from this investment?
Kishore Moorjani, Blackstone's head of tactical opportunities, Asia, views this as their first investment in the sector. He expects to be a value-added investor, helping FLFL and the Future Group meet India's fashion needs.
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