May 19, 2023
Nanushka has announced it has obtained significant funding to underpin its new expansion phase. The Hungarian men’s and women’s ready-to-wear label, founded in 2006 by designer Sandra Sandor, is renowned for the sustainability of its collections, a design approach the label has adopted from the outset with strict criteria. Nanushka, owned by the Vanguards Group and the GB & Partners investment fund, and positioned in the understated luxury segment, has now finalised a financing deal worth €10 million with Swiss investment firm SIG-i Capital AG, a provider of alternative credit financing, to support its new expansion phase.
SIG-i Capital AG was founded by former executives of the Credit Suisse banking group. It is a specialist provider of alternative credit to European SMEs. It offers alternatives to traditional financial instruments, such as mezzanine financing, which combines the characteristics of a loan with those of equity financing, a solution that was chosen by Nanushka for this operation.
“On May 4 2023, Nanushka signed a financing agreement with SIG-i Capital AG, via the SIG-i EURO MEZZ fund. The transaction includes funding worth €10 million in the form of mezzanine financing, and implies an intrinsic valuation of more than €100 million for Nanushka,” the label stated in a press release, adding that the funds will be used “to refinance existing debt and provide additional liquidity to accelerate the company’s next growth phase, including expansion in Asia and the United States, among others.”
“This is a major milestone for Nanushka that will contribute to decisively putting behind us recent supply chain challenges,” said Peter Baldaszti, co-owner of Nanushka and CEO of the Vanguards Group, which he founded in 2020 with Agoston Gubicza, head of investment fund GB & Partners Investment Management. The group also holds a majority stake in Budapest-based women’s ready-to-wear label Aeron and in Milanese label Sunnei, founded by Loris Messina and Simone Rizzo.
The capital will help the label, known for its timeless, bohemian/utilitarian style, to “take on new growth initiatives and continue to strategically grow the business with the assurance of being well prepared for economic uncertainties,” added Baldaszti.
Nanushka operates five monobrand stores in Budapest, London, New York, Shanghai and Chengdu, and is distributed by over 140 multibrand retailers and the leading luxury e-tailers. In 2022, its annual revenue was in the region of €50 million.
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