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PARIS, Feb 3 (Reuters) - LVMH said on Friday it had set up LVMH Luxury Ventures, a vehicle destined to invest in small, promising fashion, cosmetics or accessories companies.
LVMH Luxury Ventures, which will headed by group deputy-head of mergers and acquisitions (M&A) Julie Bercovy, will buy stakes in luxury companies with sales of between 2 million and 5 million euros ($5.4 million) and a high-growth potential.
"The aim is to accompany financially the development of these small nuggets to create value," said an LVMH spokesman.
The venture will have a starting capital of 50 million euros while the size of the investment allocated to each company will range from 2 million euros to 10 million euros.
The luxury goods industry is seeing signs of a surge of emerging fashion brands that are proving popular with young consumers thanks to social networks.
The Instagram account of Anastasia Beverly Hills, a California make-up brand distributed by LVMH's Sephora network, has 13 million subscribers, while Louis Vuitton, the core division of LVMH, has 14.6 million subscribers.
$1 = 0.9314 euros Reporting by Pascale Denis and Dominique Vidalon; Editing by Sudip Kar-Gupta