Rothschild reportedly given mandate to seek investor for Etro

Despite past reports that L Catterton was not eyeing a sale of its stake in Etro, new speculation regarding such a possibility has come to light. According to sources for WWD, financial services firm Rothschild is believed to have been given a mandate to seek an investor in the Italian luxury group.

A market source for the media outlet said Rothschild was “putting feelers out”, yet what form such a deal could take–whether a full fledged sale or the offloading of a partial stake–was not yet clear.

The speculation comes despite Etro’s chief executive officer, Fabrizio Cardinali, denying in a recent interview with WWD that L Catterton was mulling an exit from the brand. The LVMH-backed investment firm acquired a majority stake in Etro in 2021 with the intention to aid in its growth, a strategy that was fueled by expansion into new categories and the enhancement of its digital presence.

L Catterton also diverted from prior speculation back in July 2024, when it in fact increased its stake in Etro through a 1.73 million euro capital injection. It followed a substantial 15 million euro capital boost implemented in November 2023, and further consolidated L Catterton’s control over the business.