Sino-European private equity firm Mandarin Capital Partners has backed Italian textile group Miroglio as the first tranche of a significant investment into the fashion sector.
According to Reuters, the firm is to sign a memorandum of understanding with Miroglio to invest €40m in the company, representing the first tranche of a scheme to invest over $700m into the fashion sector.
The deal is said to be part of a $3.2bn package of deals due to be unveiled following a meeting between Italian Prime Minister Silvio Berlusconi and Chinese Vice President Xi Jinping.
Fashion spending in China is increasing in light of the country’s fast-growing middle class.
Mandarin Capital ha soffices in Luxembourg, Milan and Shanghai.
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