Chanel's owners invested in The Row

An unexpected piece of news arrived last night: The Row, the cult brand founded by Mary-Kate and Ashley Olsen, now has new investors: the owners of Chanel and the L’Oréal heiress, the richest woman in Europe, and is currently valued at around one billion dollars. The Wertheimer family, owners of Chanel, and Françoise Bettencourt Meyers, heiress to L’Oréal, have acquired a minority stake in the brand through their respective investment vehicles: Mousse Partners, the Wertheimer family office, and Tethys Invest, the Bettencourt Meyers family investment vehicle. According to Bloomberg, Imaginary Ventures, co-founded by fashion entrepreneur Natalie Massenet, was also among the investors. Despite these new shareholders, the Olsen twins will retain the majority ownership of their maison, which can now benefit from even greater financial resources as well as the inevitable support that a mega-network like that of the Wertheimer and Bettencourt Meyers families combined can provide. Representatives from all parties involved, including Mousse, Tethys, The Row, and Imaginary Ventures, declined to comment on the specific details of the deal, but some already suspect that an expansion of The Row into beauty or makeup may occur very soon.

But the most important thing is that the presence of such illustrious shareholders definitively cements (not that it was necessary) the credibility of The Row and the Olsen twins, who from today can fully call themselves free from the "celebrity brand" aura that surrounded their company in its early years. Founded in 2006, The Row has made a long journey to achieve such recognition and an opportunity for expansion: if, as mentioned, it first had to shed the label of a celebrity brand, the popularity of the Olsen's creations has steadily grown among celebrities and ultra-wealthy clients who had previously been accustomed to the services of brands like Hermès, Chanel, or Brunello Cucinelli. After years spent building a reputation more through word of mouth and enthusiastic reviews from American fashionistas, The Row found a new momentum after the pandemic, especially once it became part of the regular Paris Fashion Week schedule, where it became famous both for its hyper-discreet and aristocratic presentations (so loved that insiders even discuss the simple yet refined catering offered to guests) and for the ecstatic reviews it receives. This year, the decision to ban photos and videos at the show made the event even more talked about. Meanwhile, key products like the now-famous Margaux bag, which can cost up to $7,000, are considered in direct competition with those of historic brands like Hermès, Prada, or even Chanel itself – a brand we can now consider a “distant cousin” of The Row, given the Wertheimer family's stake.

In recent years, the Wertheimer family, known primarily for their control over Chanel, has expanded their influence in luxury markets through Mousse Partners, much like the Arnault family with L Catterton or the Pinault family with Group Artemis. In particular, Mousse has invested in a range of sectors beyond fashion, from the biotechnology company Evolved by Nature to the digital advertising firm Brandtech Group. The family also played a significant role in taking the prestigious investment bank Rothschild & Co private. Brothers Alain and Gérard Wertheimer, co-owners of Chanel, each have an estimated fortune of around $43 billion, according to the Bloomberg Billionaires Index. Françoise Bettencourt Meyers, on the other hand, is the richest woman in Europe and heiress to the L’Oréal fortune, of which she owns 34.37%. She has invested in various sectors, including the French brand Sézane and Ceva Santé, a pharmaceutical company specializing in veterinary products. Her net worth is currently estimated at around $84 billion. However, the investment in The Row inevitably seems more significant, as the brand now has the financial backing to explore new projects and product lines, expanding its offerings and strengthening its global presence.