Palamon takes stake in online retailer(4)

Palamon Capital Partners has carried out its ninth investment for its latest fund as it looks to benefit from the growth of online clothes shopping.

Online clothing retailer Dress-for-Less has sold a stake for an undisclosed sum to Palamon Capital Partners, a UK private equity firm that targets high-growth European businesses.

Dress-for-Less has several online shops for fashion brands and also sells end-of-season designer clothes. The company sells 250 different brands such as Ben Sherman, Calvin Klein and Tommy Hilfiger.

Dan Mytnik, principal at Palamon, said online retailers will continue to see high growth across Europe and the investment in Dress-for-Less would allow the private equity firm to benefit from this macro-trend.

Dress-for-Less is the ninth investment from Palamon’s second fund, which was raised in 2006 and has commitments of €670 million ($453 million).

Earlier this month, Palamon-backed company SAV Credit bought HSBC’s Marbles and Beneficial-branded UK high risk credit card portfolios for approximately £385 million. A source close to the transaction said SAV Credit acquired the cards at a discount.