Private Equity: Very Fashionable

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Back in our early M&A days, we found ourselves in the midst of a mutli-player, seemingly endless buyout deal featuring a number of high-end fashion houses. In order to keep up with the industry we started reading the trades. Our local newsstand guy actually asked us once if we were having a crisis when we picked up Women's Wear Daily every day for a week.
Well, WWD is now reporting that investment banks and private equity firms are looking into investing in young fashion talent. So don't be too surprised if you see that guy on the train to Greenwich putting down his Wall Street Journal and picking up the latest issue of WWD.
We actually feel kind of bad for the fashion kids getting swept up in this. They probably don't know much about private equity. When a guy named "buzzsaw" shows up and starts laying off designers, though, they will learn quick. From the WWD story, it sounds like the fashionistas and capitalists are still in their honeymoon phase. But the kids with the threads might want to ask how long until we reach the "private equity massacres with fashion companies" called for by this blogger?
Private Equity on Hunt for Young Talent [Women's Wear Daily via Almost a Girl]

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