PARIS — Two seasoned but discreet figures in European dealmaking — with backgrounds leading M&A at rival French luxury groups LVMH Moët Hennessy Louis Vuitton and Kering — have come together to form a boutique financial advisory.
“Our networks are very complementary,” Pierre Mallevays said over lunch as he and Charles de Fleurieu confirmed the creation of Mallevays Fleurieu exclusively to WWD. “The value-added is about picking the right target or picking the right buyer, because we understand the fit and we have access to the people.”
Based in Paris, the upstart firm will also function as a strategic advisory, bringing together two of the most formidable Rolodexes in the fashion industry, and experience across varied geographies and sectors.
“It’s not only about buying or selling companies — it’s partnerships, it’s important licensing agreements, it’s important distribution agreements, and long-term, joint venture-type projects,” de Fleurieu noted.
For the past four years, Mallevays was co-head of Stanhope Capital Group’s merchant banking department in London, though he is probably best known as the founder of London-based Savigny Partners, working with the likes of Lanvin, Celine, Christian Lacroix, Byredo, Le Labo, Robert Clergerie and Tom Dixon since 2005, and sitting on the board of several of those companies.
Between 1998 and 2004, he was director of acquisitions at LVMH and helped spearhead the buying spree — particularly in watches and beauty — that helped build it into the world’s largest luxury goods group.
More recently, Mallevays advised LVMH on its disposal of Off-White, and he sold Delvaux to Compagnie Financière Richemont — the second time he led a transaction for the storied Belgian leather goods house.
For the past six years, de Fleurieu has worked as founder and chief executive officer of Louve, a consultancy in Paris specializing in such cutting-edge fields as luxury sustainable cosmetics, hydrogen-powered cars, alcohol-free spirits and e-health.
Between 2012 and 2020, he worked at PPR, the precursor to Kering, initially as head of M&A and spearheading the French conglomerate’s transition out of retail and sport/lifestyle to refocus on luxury, closing more than 35 transactions over an intense three-year period. He went on to help form Kering Eyewear, and lead its Japan operations before moving to Milan to be global managing director of jewelry firm DoDo.
His résumé also includes an earlier stint as deputy head of M&A at France Télécom — Orange Group.
“We’ve done M&A, but we’ve been also acting as principals inside luxury groups, and so that gives us more credibility vis-a-vis our clients, because we’ve been with them, alongside them,” Mallevays said. “Frankly, this gives us a better understanding of how these businesses work from inside.”
“The operating and board experience is very important, and is a very big differentiator compared to other bankers,” de Fleurieu agreed. “It brings us a lot of trust on the part of the brands themselves or the founders because we understand precisely what they’re talking about when they talk about brand positioning, when they talk about business dynamics.”
While the two Frenchmen knew about each other, their professional paths crossed only once, when Savigny Partners had a sale mandate on a French fashion company that Mallevays brought to Kering for its consideration.
Mallevays recalls de Fleurieu being “very friendly,” but with a soupçon of the requisite dubiety, given the history of fierce competition between the Arnault and Pinault families, which have never traded assets with each other — though occasionally barbs.
“It’s about a relationship with the client,” Mallevays said. “People will come to Charles or to me or to both of us because they know us, and because we’re independent. We’re not selling financial products, we’re not selling private equity funds. We’re not selling anything other than our advice, our expertise and our reputation.”
“Many bankers have a tendency to push the deal, and get the highest or lowest price possible,” de Fleurieu said. “Our approach is more about bridging the gap between the expectations of the seller and the reservations of the buyer.
“We’re here to bring these people together and arrive on a fair valuation that works for both sides, and therefore make the deal happen that way. And that can only happen by having a very knowledgeable discussion about the actual underlying dynamics, the actual brand positioning,” he added. “There’s been a change on the buyer side, where there’s more rigor in the way they allocate their capital, and there’s more demand on profitability, whereas the seller side sometimes still remains anchored to historical multiples and past valuation levels.”
Pierre Mallevays and Charles de Fleurieu
Courtesy of Mallevays Fleurieu
Mallevays Fleurieu arrives at a challenging time for fashion and luxury, and with vastly changed M&A dynamics.
Gone are the days when luxury groups accumulated brands. Bolt-on acquisitions are far more likely, and newer sectors like hospitality and wellness are opening up.
“It’s about how to make your existing business stronger, including by add-on acquisitions, upstream or downstream,” Mallevays said.
Meanwhile, new investor profiles are also emerging from the Middle East and Asia, which widens the playing field.
Mallevays and Fleurieu plan to specialize in the premium end of the consumer spectrum, across fashion, leather goods, beauty, specialty distribution, watches, jewelry, hospitality and fine art.
The partners already have active mandates in hospitality and accessories, but kept mum on the particulars.