Private Equity's Fashion Bet Falters as Founders Embrace Bootstrapping and New Funding Models

According to interviews conducted by Monocle, the venture of private equity into the fashion industry has largely been unsuccessful. Lauren Santo Domingo, who co-founded Moda Operandi in 2010, secured $165 million in funding led by Apax Digital Growth, which purchased Matches Fashion at a valuation of $1 billion. In 2017, L Catterton acquired a majority stake in Ganni but subsequently sold Everlane to Shein. Apax later divested Matches to Frasers Group for €60 million, resulting in bankruptcy. Reformation went public in July but faced disappointing stock performance. Noura Sakkijha from Mejuri noted a previous funding surge, while Jamie Haller expanded her brand by 450% without external investment. Mireia Llusia-Lindh's Demellier achieved a 60% increase in sales. Santo Domingo also founded St Dominique Capital, investing in Nordic Knots and The Row.