Valentino takes stake in Proenza Schouler

Valentino Fashion Group has taken a 45 percent stake in the popular US fashion brand Proenza Schouler. The group's chief executive, Stefano Sassi, will become chairman of the brand while its current chief executive, Shirley Cook, will continue in this capacity. Lazaro Hernandez, one half of the duo that is Proenza Schouler, told WWD how happy both he and partner Jack Mc Col lough were with the security this move brought with it. "The business has been growing exponentially, and to do that you need proper funding," he said. Having a strategic partner will also help their business.

VFG paid $3.7 million for the stake and Sassi said the capital increase was expected to significantly drive growth for the label. He added that Permira, the group's new shareholders, were behind the move, as Proenza Schouler - which is favoured by Hollywood elite and Park Avenue princesses alike and has won the CFDA Designer of the Year award together with Oscar de la Renta - has cachet and brings future growth potential. "Valentino Fashion Group wants to be a leader in the fashion sector," Sassi told WWD. "People like Lazaro and Jack, despite the fact that their business is not yet big, can bring something significant in terms of image."

Having launched their label in 2002 when both were merely 23 years old, the duo has conquered the fashion world at a whirlwind rate. They have won numerous prizes, received critical acclaim for their work, and have also booked commercial success with a short-term collaboration with Target.

In 2006, the duo bought out their backer, Markus Hofels, They have been courted by various parties interested in investing in their business, including LVMH, since the onset, but never found the right partner. "We were waiting for someone who had a similar vision to what we had, and experience in developing a brand," Hernandez said. VFG appears to have the right fit.

According to Sassi, VFG will fulfil a supporting role with Proenza Schouler. There will not be any major changes for the business, which is sold at 80 points of sale worldwide. It will help the label to expand in leather goods and in new markets, particularly in Europe and Asia .