Victoria Beckham has raised around $40 million (£30 million) from a partnership with an equity firm in exchange for a minority stake in her brand. The British designer founded her eponymous label in 2008 after soaring to fame as part of girl band the Spice Girls, and almost a decade later, it has substantially grown in size and popularity. To help her empire evolve further, Beckham has forged a deal with Neo Investment Partners, which is thought to have valued her business at $133.4 million (£100 million). This transaction will see the equity company take a small stake in her label.
"As the business continues to grow, I appreciate the need for external investment which, in turn, would bring external expertise," she told Business of Fashion. "Neo has shown it can take founder-led businesses with a global outlook to new heights. Our focus is on building a sustainable, profitable luxury brand."
The mother-of-four is planning to channel the funds into boosting her label's retail presence and e-commerce platform, in addition to growing core products and adding new categories.
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BoF also reports some of the money will go towards settling accumulated debt, which in the past has been partly tackled thanks to the contribution of the fashion star's husband, former soccer star David Beckham, who has also made his mark in the world of style thanks to countless collaborations over the years.
David Belhassen, founder and managing partner of Neo Investment Partners, added: "Victoria Beckham is one of the most exciting entrepreneurs I have had the pleasure to work with. She is an inspiration to millions of women around the world and she has built a unique, differentiated luxury brand with a strong identity and very high potential. I am delighted to be working with her and her team to reach the brand's full potential."
Beckham also has her hands full with an upcoming collaboration with Reebok, due to be unveiled towards the end of 2018. It comes after previous partnerships with the likes of Target and Estee Lauder.
Discussing her venture with the sportswear brand, she said: "For me, (the partnership) highlights the potential for the brand to grow and expand outside of existing categories. To challenge the traditional notions of fitness wear within a fashion context is something I have always wanted to do."
