Derek Lam secures investors

American fashion designer Derek Lam has sold a minority stake to New York investment capital firm Sandbridge Capital, whose senior advisors include Tommy Hilfiger and former Gucci CEO Domenico de Sole. In September 2013, Sandbridge raised 33 million dollars to help support young

brands with high growth potential and it is understood that the investment firm has also invested in other fashion brands that have yet to be announced. The exact terms of the deal have not been disclosed, just that Sandbridge has taken a “significant minority position” in the Derek Lam brand.

Sandbridge

focuses on the consumer and retail sectors, and in the statement it added that its financing will provide the growth capital needed to expand Derek Lam’s retail, wholesale and direct-to-consumer e-commerce platforms, which will help position Lam as the “next premier American luxury lifestyle brand”.

Sandbridge Capital acquires Derek Lam stake

“We are very pleased to have Sandbridge as our new partners, helping us to implement our growth plan,” Jan-Hendrik Schlottmann, CEO and co-founder of Derek Lam, told WWD. “Derek Lam has a tremendous amount of brand momentum right now, and we are excited about the prospects of partnering with industry veterans who understand our business and can be value-added partners immediately.”

In November of 2012, Derek Lam bought back his namesake company from London-based luxury goods group Labelux with co-founder and CEO Schlottmann. With Sandbridge taking a “significant minority position” in the brand this could mean as much as a 49 percent stake.

Domenico De Sole, who has mentored Lam since he won the CFDA/Vogue Fashion Fund, commented: “I have been mentoring Derek since 2004 and I continue to admire his elegant aesthetic. I’m confident that with his outstanding talent and strong work ethic he will take the Derek Lam brand to new heights.”

Derek Lam debut his namesake label in 2003 during New York Fashion Week, after working for various fashion houses, including Tod’s and Michael Kors. The brand currently has just one store which opened on Madison Avenue in New York in 2009, although his collections are sold at luxury department stores including Barney’s, Bergdorf Goodman, and Saks and online at Net-a-Porter.

Images: Derek Lam