Palamon Capital Partners has sold online fashion retailer dress-for-less to a trade buyer, General Atlantic-backed Privalia Venta Directa. The exit will generate an internal rate of return of 40 percent for Palamon, said Holger Kleingarn, a partner at the firm, in a statement.
Dress-4-less: smart exit
Financial details were not disclosed, but several media sources have pegged the enterprise value of the business at €200 million. Palamon originally invested in dress-for-less in 2007.
Dress-for-less is a Germany-based online fashion retailer, selling end-of-season designer clothing. Following Palamon’s investment in the company, it installed a new logistics facility and IT infrastructure. Revenue has grown 35 percent year-on-year since 2007, said Palamon in a statement.
This is Palamon’s seventh realisation in the last 12 months, the most recent of which was the €500 million sale of Loyalty Partner to American Express in December 2010, which generated a 3x return on Palamon’s invested capital.
Privalia was launched in 2006 and is headquartered in Spain. In April last year the company raised €70 million from two new investors, General Atlantic and Index Ventures, having previously secured funding from Highland Capital Partners.