[10], He worked with Alain Chevalier, CEO of Mot Hennessy, and Henry Racamier, president of Louis Vuitton, to form LVMH in 1987. LVMH had been created on the premise that the conglomerate would be too large for a single hostile raider. Their most recent investment was on Oct 20, 2021, when Open raised $9M. One after another at the bank's investor day on Tuesday . 6 Companies Owned by LVMH (Mot Hennessy Louis Vuitton SE), Rihannas Net Worthand How She Made Her Billions, Education and Early Career (1971 to 1984). Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. This compensation may impact how and where listings appear. The investment arm of family-controlled LVMH and Groupe Arnault has purchased a stake in Trendy International Group, as it looks to increase its exposure to China. 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. Groupe Arnault's investments, meanwhile, include a 16 percent stake in retail giant Carrefour SA via Blue Capital, an investment fund owned by Groupe Arnault and Colony Capital. Since the merger, there had been constant feuding and legal battles between Racamier and Chevalierwhich became the opening Arnault needed. Bernard Arnault's and Arnaud Lagardere's financial companies issued a joint statement on Wednesday to say Arnault's investment unit Financiere Agache would hold around 27% of Lagardere Capital . "Louis Vuitton Rises, Gucci Slips in Brand-Valuation Study. "Birkenstock was founded nearly 250 years ago and has grown to become one the few . Diversity Spotlight (US Headquarters Only): Types of diversity represented in an organization, specifically of those who are founding members, currently the CEO, or have check-writing abilities in an investment firm. 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 use cookies and similar technologies to improve your user experience. the consulting group, and KKR, the investment firm . [4], Bernard Jean tienne Arnault was born on 5 March 1949 in Roubaix. Bernard Arnault's wealth is around $203 billion. These cookies do not store any personal information. He discreetly amassed a 5 percent stake in the company before being detected. Among the various public portfolio startups of the fund, we may underline Spotify, Airbnb, Slack Technologies The fund has no exact preference in a number of founders of portfolio startups. https://www.lvmh.com/group/about-lvmh/governance/executive-committee/michael-burke/. This website uses cookies to improve your experience while you navigate through the website. Description Mr. Bernard Arnault serves as Chief Executive Officer, Chairman of the Board of Directors & Member of the Executive Committee at LVMH Mot Hennessy Louis Vuitton. A conglomerate is a company that owns a controlling stake in smaller companiesindependent operators in similar, but sometimes unrelated, industries. [71] Arnault and his family have an estimated net worth of US$206.7 billion as of February 2023 according to Forbes,[72] making him the richest person in the world, surpassing Elon Musk. To view Bernard Arnaults complete investments history, request access, To view Bernard Arnaults complete exits history, request access, To view Bernard Arnaults complete team members history, request access, Youre viewing 5 of 94 co-investors. But opting out of some of these cookies may have an effect on your browsing experience. Following the acquisition of a textile company and relocation of its headquarters, the company renamed the real estate branch to the George V Group. For example, when Arnault automated production at Vuitton, he drove that venerable old brand to the top spot on Fashionistas list of the world's best-selling luxury brands in 2011, with a value of $24.3 billionmore than twice the amount of its nearest competitor. That same year, the net profit increased by 29%. Bloomberg's analysis shows that via his family-owned holding company Group Arnault, the billionaire also controls: 97.4% of Christian Dior, the luxury fashion house (which owns ~45% of LVMH with Group Arnault combined) . [9], With the help of Antoine Bernheim, a senior partner of Lazard Frres, Arnault acquired the Financire Agache, a luxury goods company. In 2019, the Financial Times described the famously competitive Arnault as having a compulsion to possess beautiful brands and transform their creativity into profits. Within four decades, he built LVMH "from a near-bankrupt French textile company to a global group with 46.8 billion in sales (2018) and a portfolio of over 70 of the most desirable luxury brands in the world, including Louis Vuitton, Dior, Givenchy, Veuve Clicquot, and Dom Prignon. The entire focus of Arnault's teams is the creation of star brands that must meet a high bar for four artistic and financial criteria:LVMH brands must be timeless, modern, fast-growing, and highly profitable. In practice, profitable creativity means that star brands are born only when a company manages to make products that speak to the ages but feel intensely modern and sell fast and furiously, all while raking in profits., Although the LVMH process begins with "radical innovationan unpredictable, messy, highly emotional activity on the creative end, as soon as it comes to getting creativity onto shelveschaos is banished, and the company imposes "strict discipline on manufacturing processes, meticulously planning all 1,000 tasks in the construction of one purse., The genius of Arnaults process is that, although the "front end of a star brandthe innovationthe creative process, the advertisingis very, very expensive, the back end of the process in the atelier (the factory) is a place of "amazing discipline and rigor that drives high profitability behind the scenes. Brands with unbelievably high quality require unbelievably high productivity, so every single motion, every step of every process is carefully planned with the most modern and complete engineering technology.. Bernard Arnault Career History., Business Insider. During these early years, he also began to attract both an avid fan base and a vocal circle of critics. We also use third-party cookies that help us analyze and understand how you use this website. 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. We don't import or message your contacts, nor post on your behalf. [52][53], From 1999 to 2003, he owned Phillips de Pury & Company, an art auction house, and bought out the first French auctioneer, Tajan. Since Arnault's 1989 power play to take over LVMH made him infamous throughout Europe, industry observers have credited his outstanding success in a highly competitive industry to the fact that he understands both the creative and the financial aspects of running a luxury business. In a 2001 Harvard Business Review interview, Arnault explained his famous business process, whichunlike the traditional fashion industryrequires financial discipline as well as creativity. [9] Gucci responded hostilely and called it a "creeping takeover." When government officials said that he had promised to preserve jobs and assets, Arnault claimed that his only pledge was to make the company profitable. . [48] Arnault has promoted decisions towards decentralizing the group's brands as a business strategy. He also serves as President of the Board of Directors of Groupe Arnault S.E. In 2012 he was appointed CEO of Bulgari and then Chairman and CEO of Louis Vuitton. Does the Arnault family have a Single Family Office? [65] During the COVID-19 pandemic, Arnault saw his wealth shrink by $30 billion as sales of luxury goods plummeted. [12] He then turned on Racamier, stripped him of his power, and ousted him from the board of directors. [27], From 2010 until 2013, Arnault was a member of the Board of Advisors of the Malaysian 1MDB fund. Investment Consultants Fund and Transaction Services Consulting and Corporate Advisory Services . The high activity for fund was in 2015. 6. [45] LVMH completed the purchase of Tiffany in January 2021. You also have the option to opt-out of these cookies. Bernard Arnault., Bloomberg. 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. In the decade after Arnaults takeover, as he built a portfolio of the most exclusive assets in luxury, the value of LVMH multiplied fifteen times over and sales and profit increased fivefold.. 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. Compagnie Nationale Portefeuille ('CNP') is a private Belgian mid-market investment company with Net Assets of ~2 billion, exclusively controlled by the Frre family. You also have the option to opt-out of these cookies. This website uses cookies to improve your experience while you navigate through the website. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Christian Dior S.A. History., Wall Street Journal. Take this excerpt from an article about Arnault in GeniusWorks (emphasis mine): companies at all stages. The main department of described VC is located in the Paris.Among the most popular fund investment industries, there are Travel, E-Commerce. Groupe Arnault is a principal investment firm. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. LinkedIn sets the lidc cookie to facilitate data center selection. Investopedia requires writers to use primary sources to support their work. In 1987, with $500 million in cash from divesting Boussac businesses, Arnault began investing in his next luxury target: Mot Hennessy and Louis Vuitton, two iconic French companies that had. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. [citation needed] By 1987, the company was profitable again and booked earnings of $112 million on a revenue stream of 1.9 billion dollars. Mr Arnault, a . Groupe Arnault has made 3 diversity investments. 1, 2023, and end on or before Jul. Indeed Arnault is the CEO and chairman of the luxury goods conglomerate LVMH Mot Hennessy Louis Vuitton, a massive luxury group that generated over 79 billion in revenue ($83 billion) in 2022, spanning across wines, fashion, cosmetics, and retail. As of April 21, 2022, Arnault had a net worth of $146 billion, which made him the third richest person in the world (after Elon Musk and Jeff Bezos), according to the Bloomberg Billionaires Index. Investment industries, there had been created on the premise that the conglomerate would be too large a. Saw his wealth shrink by $ 30 billion as sales of luxury goods plummeted Travel, E-Commerce CEO Louis. 2010 until 2013, Arnault was a member of the Board of Directors department of described VC located! 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