L Catterton acquires majority stake in Japanese denim brand Kapital

L Catterton, the global investment firm associated with LVMH and the Arnault family, is further expanding its investment portfolio with a significant acquisition in the fashion industry. At the end of 2024, the Asian division took a majority stake in the renowned Japanese denim brand, Kapital, which was founded in 1985 by the late Toshikiyo Hirata. While the financial details of the transaction remain undisclosed, this move marks a noteworthy addition to L Catterton’s diverse investment strategy.

Unlike previous investments in brands such as Ganni, Jott, or Birkenstock, which target a broader premium customer base, Kapital aligns more closely with L Catterton’s acquisitions like APC and the Swedish label Our Legacy. Kapital embodies a deep-rooted connection to product culture and the visionary ethos of its founder, emphasizing artisanal craftsmanship and traditional Japanese weaving techniques.

Toshikiyo Hirata’s passion for American denim emerged during his time in the United States as a karate instructor. Upon returning to Japan in 1984, he established a denim factory in his hometown of Kojima, which is celebrated as the birthplace of Japanese denim culture. The following year, he launched Kapital, a brand distinguished by its unique blend of traditional Japanese techniques—such as Boro patchwork—and styles inspired by American aesthetics. This fusion has positioned Kapital as a key player in the vintage denim culture, known for its innovative material treatments and bold stylistic explorations.

In the early 2000s, Hirata’s son, Kiro, joined the family business and took over as the chief designer, a role he continues to fulfill today. The strategic ambitions of L Catterton remain to be seen, especially considering the investment was facilitated through the firm’s L Catterton Asia III fund, which typically engages in investments ranging from $25 million to $150 million. Kapital’s model is predicated on producing avant-garde pieces in small batches, emphasizing exploration and experimentation in design.

The pricing of Kapital’s offerings reflects its premium positioning, with five-pocket jeans starting around €150 and some models exceeding €1,000, depending on the craftsmanship involved. Additionally, the brand features shirts starting at €300, sweatshirts from €350, and t-shirts beginning at €120. Currently, Kapital operates 13 stores in Japan and has approximately 60 international retailers, including high-end e-tailers and denim specialists worldwide. This acquisition not only strengthens L Catterton’s foothold in the fashion sector but also underscores the growing global interest in artisanal and culturally rich brands.