Blackstone, globally the biggest private equity firm, has invested a whopping Rs. 1,750 crore in Ryka Commercial Ventures, the holding company of Future Lifestyle Fashion, through debentures which will be used to retire or pre-close all existing financial obligations.
Blackstone is infusing capital by combining equity and structured debts. This will fund the capital expansion of Kishore Biyani’s deep-discount retail format ‘Brand Factory which is modeled on American retailer TJ Maxx’
In July 2019, Blackstone acquired around 6 per cent stake in Future Lifestyle Fashion for about Rs. 545 crore in a secondary market transaction. Kishore Biyani and his family own 53.4 per cent of Future Lifestyle Fashion through various entities including Ryka Commercial Ventures. Though the Future Group generates its biggest chunk from food and grocery retailing, its apparel and lifestyle segment generates higher margin business. The company grew by 27 per cent last fiscal with revenues of Rs 5,728 crore. The firm also manages nearly 30 brands including Indigo Nation and Lee Cooper, through 339 stores across 7.2 million square feet of retail space.
