Kohlberg Kravis Roberts (KKR) had invested in Novo, a fashion apparel retailer focused on China’s urban youth.

KKR, through KKR China Growth Fund, has injected US$30 million in Novo. Since the global private equity company’s investment, Novo has significantly expanded its nationwide store network and pursued licensing agreements with international fashion brands to help fuel its China growth.

“There is a history of growth when retail companies partner with KKR and we are confident that this partnership will enable us to leverage their retail industry expertise and local knowledge to further grow our business as an industry leader in China,” said Alan Fang, chairman and CEO of Novo.

“We plan to grow aggressively in the coming few years both in our anchor stores and brands development,” Fang added.

CEO of KKR greater China, David Liu, said KKR has seen enormous long-term growth potential in the Chinese fashion retail industry driven by rising domestic consumption and an increasing demand for the latest fashion trends. Liu added that the Chinese youth apparel retail market is pegged at US$38 billion and has been growing at 16 per cent per annum since 2005.

KKR has completed 21 transactions in the retail sector around the world since its first retail investment in 1981. The firm’s retail portfolio investments have included supermarkets, pharmacies, department stores, food distribution companies and specialty retailers.

Novo, founded in 2004 by Alan Fang, operates a specialised department store chain focused on fashion apparel and accessories for China’s urban youth, and currently has 11 operational stores in selected major cities inside shopping malls and department stores.

In addition, the company also operates a franchise of retail stores selling international fashion apparel and accessory brands with over 80 stores.

GB