Despite the current slowdown, the global luxury goods sector harbors such auspicious long-term prospects that a key consultancy in Paris has attracted an investment from private equity firm Activa Capital.
The transaction will allow MAD, founded in 2009 by Delphine Vitry and Jean Révis, to open offices in Milan, New York and Dubai, and expand its bouquet of consulting services to include CSR and supply chain areas, plus data and artificial intelligence.
Disclosing the transaction exclusively to WWD, Vitry and Révis said the operation would put at MAD’s disposal 25 million euros of capital to accelerate its development, and allow it to better service luxury brands and retailers.
Terms of the deal were not disclosed, but it is understood that Activa holds a minority stake.
As part of the leveraged buyout, Vitry and Révis have also brought 15 of MAD’s top managers into the share capital.
Dedicated solely to purveyors of personal luxury goods, MAD offers strategic consulting on its clients’ brands, product offering, client relations, distribution and human resources. In addition to its core consulting practice, MAD operates an academy for transformational learning and an executive-search arm dubbed MAD Talent.
The company employs 60 consultants from eight different nationalities at its Paris headquarters and about 10 people in its Shanghai office, established in 2021.
Vitry and Révis mentioned Japan, South Korea, Southeast Asia and India as potential geographies for future expansion.
MAD boasts an entire alphabet of marquee clients, ranging from Alaïa, Ami Paris and Armani through to Vacherin Constantin, Van Cleef & Arpels and Yves Saint Laurent, according to its website. Its practice operates across fashion and accessories; watches and jewelry; perfumes and cosmetics; wines and spirits; luxury automobiles, and malls and department stores.
Vitry was an executive at Louis Vuitton and Celine before founding MAD with Révis, who brought 15 years of operational and strategic experience as a partner in two consulting start-ups.
The two luxury brainiacs believe “magic and logic” are essential ingredients for success in the sector, and remain convinced of its long-term strength and resilience.
Paris-based Activa Capital targets investments mainly in the services sector, specializing in primary transactions. Its current investments include consulting firm Willing, financial advisory Rhétorès, real estate network BSK Immobilier, software publisher Arche MC2, airport spa operator Be Relax and high-end food labeling specialist Alliance Etiquettes.