PARIS – LVMH Moët Hennessy Louis Vuitton has taken a minority stake in Lusix, a producer of synthetic diamonds, the Israeli firm announced.
The investment arm of French luxury conglomerate LVMH Luxury Ventures was one of many participants in a $90 million investment round, alongside Israeli fund Ragnar Crossover and investment house More, said Lusix in a statement.
In an effort to reduce emissions, the company uses solar power to grow its gem-quality diamonds, which it has trademarked as Sun Grown Diamonds.
“The company will use this investment to fuel its growth initiatives, including expanding its production capacity in Israel with a second state-of-the-art facility, which will begin production this summer,” he said.
The investment comes as lab-grown diamonds, touted as a more sustainable alternative to natural diamonds, make new inroads into the fine jewelry market, amid sanctions on Russia, one of the main suppliers of natural diamonds. .
LVMH-owned watch brand Tag Heuer used Lusix diamonds on its centerpiece Carrera Plasma, unveiled at Watches & Wonders in Geneva in March, touting the design as “truly revolutionary”.
“We are delighted and proud to welcome such prestigious investors, including LVMH Luxury Ventures, providing their financial support and valuable industry knowledge,” Lusix Founder and Chairman Benny Landa said in the statement.
“Their assistance will go a long way towards the success of our business, while the implications of this investment, both for Lusix and for the synthetic diamond segment, are profound – and so exciting,” he added.
LVMH Moët Hennessy Louis Vuitton created LVMH Luxury Ventures in 2017 with the mission of taking minority stakes in early-stage luxury brands that have strong growth potential and compelling business models.
His early investments were French beauty brand Officine Universelle Buly 1803 and New York-based sneaker retailer Stadium Goods, both of which he previously left.
In 2019, she took a minority stake in Gabriela Hearst, the luxury women’s clothing brand dedicated to sustainability.
Its current portfolio also includes streetwear brand Aimé Leon Dore, skincare brand Versed, clothing brand Madhappy, watch platform Hodinkee, mystery box startup Heat and social shopping specialist Replika Software. .
According to its website, LVMH Luxury Ventures targets companies with turnover between 5 and 100 million euros, and makes equity investments ranging from 5 to 20 million euros, generating stakes between 5 and 25%.
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