L Catterton shopping Danish luxury fashion brand Ganni

Private equity firm L Catterton aims to sell its Danish fashion brand Ganni in a deal that could be valued between $500 million and $700 million, Reuters reports.

Why it matters: High-end retailers have been beneficiaries of the strong spending power of the affluent consumer during the pandemic.

Details: L Catterton tapped Lazard as its banker to help with the sale process.

• So far, it has drawn interest from Chinese buyers, Reuters reports.

Context: Ganni was founded in 2000 and offers contemporary, ready-to-wear apparel and capsule collections.

• Its outfits can be found on digital luxury platforms like Net-a-Porter and Farfetch.

The intrigue: It’s an interesting time to bring a deal to market when financing has gotten more expensive and many companies are in price discovery mode over the value of their assets.

• That said, there’s investment-hungry private capital out there that’s hunting for the best deals.
• Global private equity activity remains strong, rising by 3.3% in the first half of 2022 compared with the same period last year, Pro Rata’s Dan Primack writes. But, he also adds, the number of PE deals fell.

Flashback: L Catterton, which has a penchant for consumer brands, acquired a majority stake in Ganni in 2017.