The highly effectivebut ruthlessmethods he used to turn around Boussac made Arnault known as a force to reckon with in French business., For example, in order to focus on the two core assets that he knew he could scalehis haute couture prize and Bon March department storehe proceeded to make the company solvent by selling off most of the other businesses and firing 9,000 workers. After winning one of the fiercest battles in French fashion, he became Chair, CEO, and majority shareholder of LVMHa position he continues to hold as of April 2022. YSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages. [6][8] In 1984, Arnault, then a young real estate developer, heard that the French government was set to choose someone to take over the Boussac Saint-Frres empire, a textile and retail conglomerate that owned Christian Dior. As per Insider, Arnault made $4.3 billion (Rs 35,439 crore) in a single day in January 2019 after LVMH shares surged 6.9%. Alexandre Arnault | Photo: Heiko Richard for BoF By Imran Amed 24 September 2017 BoF PROFESSIONAL On the creative end, as Arnault built LVMH into a luxury empire, he has proven himself an expert at hiring design talent for star brands that speak to the ages but feel intensely modern. However, because his model requires that the counterbalance to creativity must be commerce, he never hesitated to reign in, or outright terminate, creative executives who did not produce. We shall not bear anyliability in respect of such comments. LinkedIn sets the lidc cookie to facilitate data center selection. Groupe Arnault is a principal investment firm. This quickly turned into 750 brands and, obviously, many . He returned the group to profitability as he embarked upon a strategy of developing the world's leading luxury products company. [12] He then turned on Racamier, stripped him of his power, and ousted him from the board of directors. [49][50] He was also instrumental in establishing LVMH as a significant patron of art in France. If you think that some of this information is not accurate, please, The average size of a deal this fund participated in, How often the fund supports its portfolio startups at next rounds. ", Although the couture division of Christian Dior was an unprofitable operation by the time Arnault took over, he considered the fashion house a fundamental element of the Dior brand cachet. Instead of divesting, he formed Christian Dior S.A. as the holding company for the couture division and began to reinvigorate the brand with young hires that surprised the industry. [52][53], From 1999 to 2003, he owned Phillips de Pury & Company, an art auction house, and bought out the first French auctioneer, Tajan. Netflix is an online streaming platform that enables users to watch TV shows and movies. He also serves as Board Member at Devialet. [citation needed] His father, manufacturer Jean Lon Arnault, a graduate of cole Centrale Paris, owned the civil engineering company Ferret-Savinel.[6]. These cookies do not store any personal information. [citation needed] By 1987, the company was profitable again and booked earnings of $112 million on a revenue stream of 1.9 billion dollars. Groupe Arnault is the family holding company of LVMH's CEO Bernard Arnault and the controlling shareholder in LVMH. Lagardre's first-half revenues were came to US$2.4 billion, down 38 percent, weighed down by a steep drop in travel retail due to the coronavirus crisis. The Arnault family group owns 48.18% of the capital for Bernard Arnault Net Worth Read . 1, 2023, and end on or before Jul. YouTube sets this cookie to store the video preferences of the user using embedded YouTube video. As a result of these measures, brands under the LVMH umbrella such as Tiffany are still viewed as independent firms with their history. To his critics, he was the wolf in cashmere, who brought an Anglo-Saxon ruthlessness to the genteel world of 1980s French businessno more than a corporate raider dismantling centuries of tradition.. 2023 PitchBook. To his critics, he is the wolf in cashmere.. What Arnault did next is often cited as his most notoriousand successfulpower play. Arnault succeeded his father as CEO in 1977 and as Chairman in 1978, which gave him full control of the family business at the age of 29. Under Arnaults leadership, LVMH owned or had a stake in five of the luxury industrys ten most valuable brands by 2011, according to the Millward Brown Optimor BrandZ study that year. He also serves as Executive at Agla Ventures. Nest Labs is a home automation company manufacturing sensor-driven, Wi-Fi-enabled, self-learning thermostats and smoke detectors. This category only includes cookies that ensures basic functionalities and security features of the website. [79] Brigitte Macron was the French teacher of Arnault's sons Frdric and Jean when they were students at the Lyce Saint-Louis-de-Gonzague. He began his professional career that year as an engineer with the Ferret-Savinel construction company and successively was promoted to various executive management positions before becoming Chairman in 1978. Investopedia requires writers to use primary sources to support their work. [11], In July 1988, Arnault provided $1.6 billion to form a holding company with Guinness that held 24% of LVMH's shares. of a luxury watch brand in the world. [6] They separated in 1990. As Arnault built LVMH into the world's largest luxury conglomerate, he hired new design talent for star brands that speak to the ages but feel intensely modern: from Cline, Kenzo, Guerlain, and Givenchy to Loewe, Thomas Pink, Fendi, and DKNY. Arnault has his hands in a lot of different things besides LVMH. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. The Arnault family does and it is called Groupe Arnault. Since the merger, there had been constant feuding and legal battles between Racamier and Chevalierwhich became the opening Arnault needed. . [25], In 2008, he entered the yacht business and bought Princess Yachts for 253 million euros. This feature is in beta and may change with future updates. This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. In April 1999, he became the richest person in fashion, topping Zara's Amancio Ortega. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Arnault has lost a few dealsmost famously, Gucci in 2001 and Herms in 2014. The fault became too large to ignore when Arnault had a differing strategic vision from Henry Racamier, Louis Vuitton's president. Through LVMH, Arnault also has investments in French newspapers Le Parisien and Les Echos, the Radio Classique station, plus the financial weekly Investir and magazine Connaissance des Arts.. He also serves as Executive at Agla Ventures. Arnault Family to Take Full Control of Christian Dior in $13 Billion Deal., Harvard Business Review. [9] Gucci responded hostilely and called it a "creeping takeover." In July 1988, Arnault acquired Cline. [20] Five more brands were also integrated into the group: Thomas Pink in 1999, Emilio Pucci in 2000 and Fendi, DKNY and La Samaritaine in 2001. Bernard Jean tienne Arnault (French: [bna etjn ano]; born 5 March 1949) is a French business magnate, investor, and art collector. Despite the Groupe Arnault, startups are often financed by Accel, Social Capital, TA Ventures. In 2013, it was disclosed that Arnault planned to apply for Belgian citizenship and was considering moving to Belgium. In 1997 Michael Burke became Worldwide Managing Director of Christian Dior Couture, and then Chairman and CEO of Fendi in 2003. Biography. Once in the door at LVMH, he used the constant feuding between the two CEOs to secure a controlling interest and then ousted the two warring CEOs. Greenwich, CT and Paris - January 5, 2016 - Catterton, the leading consumer-focused private equity firm, LVMH, the world leader in high-quality products, and Groupe Arnault, the family holding company of Bernard Arnault, announced today that they have entered into an agreement to create L Catterton. Necessary cookies are absolutely essential for the website to function properly. In addition to LVMH, Arnault oversees further investment and holding vehicles. The strongest performing brand in the portfolio remains Louis Vuitton and in watches TAG Heuer with a 4% market share in the luxury watch market. How many investments has this organization made over time? We are a dedicated team of experienced investors and entrepreneurs. ", Fashionista. Once Arnault had ousted Racamier, he purged all the senior Vuitton executivesand then started to assemble his fragmented LVMH conglomerate into what he called a luxury-goods supermarket." The families would like to keep Herms as a family-run business. With $15 million of family money and $65 million in financing from investment firm Lazard Frres, Arnault formed a holding company (Agache Financiere) and acquired the bankrupt Boussacfor no other reason than to get Dior. Because his model requires that the counterbalance to creativity must be commerce, Arnault never hesitated to reign in, or outright terminate, creative executives who did not produce. Since the early days at Dior, he has often replaced creative executives with non-traditional talent and then shuffled them across his brands to help him identify opportunities to drive profitno matter how unpopular. Everything about our strategic plan. Spotify is a commercial music streaming service that provides restricted digital content from a range of record labels and artists. Bernard Arnault was born in 1949 in Roubaix, an industrial city in the north of France, where his father, a prominent manufacturer, owned a civil engineering and property company, Ferret-Savinel. The most-recent round of funding was led by Israeli-based Pitango Growth, and joined by Capital One Growth Ventures, Groupe Arnault, the controlling shareholder of LVMH, and C4 Ventures. Win whats next. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. The exclusivity of a luxury brand is so central to his strategy that canceling licensing deals that he sees as damaging to the brand has been part of his playbook since he took over Dior. In addition to meeting LVMHs high bar for exclusivity, Arnault said that he was attracted to an unusual aspect of the Tiffany profile: Its the only brand (he) know(s) that owns a color.. A cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface. LVMH Becomes the New Luxury Goods Colossus Following the Full Acquisition of Christian Dior.. [60] Since 2010, Arnault's daughter Delphine has been the partner of Xavier Niel, a French billionaire businessman active in the telecommunications and technology industry. [9] However, the premise failed to take into account internal takeover attempts. PitchBooks data visualizations quickly surface an investors historical investmentsshowing a breakdown of activity by industry, year and region. [3] Arnault has an estimated net worth of US$181.6 billion as of February 2023[update], according to Forbes, making him the wealthiest person in the world, until Elon Musk reclaimed the title at the end of February 2023. Arnault's investment vehicle, Groupe Arnault holds stakes in many luxury brands, . [41] Subsequently, Tiffany filed suit against LVMH, asking the court to compel the purchase or to assess damages against the defendant; LVMH planned to counter sue, alleging that mismanagement had invalidated the purchase agreement. In 2012 he was appointed CEO of Bulgari and then Chairman and CEO of Louis Vuitton. The leader of the study noted that LVMH had labels with very high standards in terms of craftsmanship," which can give "the impression of very high exclusivity, even in some cases where it may not be so exclusive.. Moreover, a startup needs to be at the age of 4-5 years to get the investment from the fund. Bloomberg Billionaires Index (Elon Musk) 1 . Although those iconoclastic designers later left LVMH, they had served Arnaults purpose: interest in his traditional fashion houses had been jumpstarted by the early 21st century. [12] LVMH acquired Berluti and Kenzo in 1993, the same year Arnault bought out the French economic newspaper La Tribune. GROUPE ARNAULT | 66 followers on LinkedIn. The revenue in 2018 was 46,8 billion euro, making 10 billion euro profit. After securing the House of Dior as the cornerstone of his future empire, Arnault launched a strategic acquisition program to take over exclusive brands that met his criteria for only the best, including the houses of Christian Lacroix, a French fashion designer, and Celine, a leather-goods designer, as well as Dior fragrance and Givenchy fashion and fragrance. Groupe Arnault has made 41 investments. [citation needed], After Arnault bought Boussac, he laid off 9,000 workers in two years, after which he acquired the nickname "The Terminator". But opting out of some of these cookies may affect your browsing experience. Save this fund for later to form your own custom list of funds, This summary is composed by our algorithm based on the analysis of the deals. Until 2017, he had controlled Christian Dior Couture through a complex web of ownership that involved the Arnault family owning 74.1% of the fashion house, with Arnault as the controlling shareholder and LVMHs other shareholders with no direct exposure to Diors rapid growth. [26] He subsequently took control of Royal van Lent for an almost identical amount. Established in 1978, Groupe Arnault SAS, was the family office of billionaire Bernard Arnault that controls luxury goods group LVMH. By clicking Accept, you consent to the use of ALL the cookies. This website uses cookies to improve your experience while you navigate through the website. Arnault had an unusual professional start for a CEO in the fashion industry: he began as an engineer and property developer in his familys civil engineering company in the industrial north of France. In 2020, a New York Times article about the Tiffany acquisitionand Arnaults legendary ability to come out ahead in every dealquoted a luxury executive, who said, His approach is not unusual in the M&A gameits just unusual in this industry. We provide dozens of additional datapoints about this fund. This unusual balance of financial and creative skills enabled Arnault to combine the assets of a bankrupt company with LVMH and numerous acquired brands to create the worlds most powerful luxury conglomeratewith revenues of 44.6 billion ($51 billion) by 2020. In 1987, with $500 million in cash from divesting Boussac businesses, Arnault began investing in his next luxury target: MotHennessy and Louis Vuitton, two iconic French companies that had merged into LVMH that year. Antoine is the CEO of Berluti, as well as Chairman of Loro Piana and head of image and communications at LVMH. De Sole discovered a loophole that allowed him to issue shares with only board approval, and for every share LVMH bought, he created more for his employees, diluting Arnault's stake. [46], Under Arnault's leadership, LVMH has grown to become the largest company by market capitalization in the eurozone,[47] with a record of 313 billion euros ($382 billion) as of May 2021. These investments range from niche tech startups to some of the most well-known household brands. 46,8 billion euro profit store the video preferences of the data that are collected include the number visitors!, he entered the yacht business and bought Princess Yachts for 253 million euros, obviously,.! Moreover, a startup needs to be at the age of 4-5 years to the. Our website to function properly dedicated team of experienced investors and entrepreneurs [ 49 ] 50. 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