JHSF reached an agreement with 1686 Partners, the European investment manager private equity recently created by David Wertheimer, one of Chanel’s heirs.
The agreement gives JHSF Capital — the group’s management arm — the right to distribute 1686’s first fund exclusively in Brazil and Latin America, allowing its investors to access a global product focused on rising brands in the luxury market.
JHSF’s objective is to raise US$50 million from a few Brazilian clients, including the Auriemo family, which controls the company.
JHSF Capital created a vehicle that will buy shares in the 1686 fund, which aims to raise US$300 million in total.
In addition to the resources that JHSF will raise, 1686 said it already has commitments of US$150 million and hopes to raise the remaining US$100 million by May.
The partnership is in line with CEO Augusto Martins’ strategy of doubling JHSF’s focus on recurring revenue businesses — which includes JHSF Capital itself, shopping centers, Fasano hotels and restaurants, and Catarina executive airport.
The raising of the new fund will increase by 15% the assets under management of JHSF Capital, which already has R$1.6 billion in AUM, divided between a monoactive real estate fund that has 33% of Shopping Cidade Jardim and a FII that has stakes at Shopping Ponta Negra, in Manaus, and Bela Vista, in Salvador, which are controlled by JHSF.
The manager has a pipeline raising R$3 billion over the next two years, including a residential income fund, and a residential development FII in partnership with eB Capital.
In addition to increasing the assets under management of JHSF Capital, the partnership with 1686 will generate “a great synergy of knowledge exchange,” the CEO of JHSF told Brazil Journal. “We will have access to new luxury brands with global impact in the main high-income sectors, as well as David’s vision on new trends.”
JHSF will also have a seat on 1686’s investment committee and a physical base in Geneva, in the same office as the partner.
“We will also have exclusivity to develop the brands invested in by the fund in Latin America,” which directly benefits the company’s shopping malls, said the CEO.
1686’s thesis is to invest in luxury brands, aspirational brands or accessible brands that are at an early stage of development and have a positive impact on society — whether through the use of sustainable materials, greener production processes or a approach different in distribution.
The fund will invest in fashion brands, watches and jewelry, accessories, cosmetics and gastronomy.
Wertheimer — who is the son of Chanel’s co-controller, Gérard Wertheimer — has already tested the same thesis in another vehicle he created in 2020 within Mirabaud, the Mirabaud Lifestyle Impact & Innovation Fund.
That fund invested US$150 million in brands like the Chinese Urbanicwhich sells clothes in the model fast-fashion; The La Bouche Rouge, a French makeup brand; and the Cariumaa Brazilian footwear brand that only works with sustainable materials.
The idea is that 1686’s new fund will make new rounds in some of the brands that are already in the previous vehicle’s portfolio.
So far, the fund has already made four investments: Fusalp, a French mountain sports and fashion brand that competes directly with Moncler; The Watchbox, a platform for trading pre-owned luxury watches; The MSCHF, a New York art collective that produces and sells art online; and the Syrupa software that helps retailers and brands optimize their inventory with AI.
Pedro Arbex and Geraldo Samor
