Blackstone has infused capital in Future Lifestyle Fashions. The primary investment will be through a combination of equity and structured debt that will fund the capital expansion of the deep-discount retail format Brand Factory. The structured credit line will be for five years with a fixed coupon while the equity upside is expected to accrue through Blackstone’s stake in Future Lifestyle’s operating company.
Blackstone is the world’s largest private equity firm. Blackstone also runs one of the largest real-estate focused funds in the world and is the largest owner of office space in India. Future Lifestyle is the Future Group’s flagship fashion business. It operates more than 300 stores in more than 90 cities, occupying 5.7 mn sq ft of retail space. It owns and markets leading brands like Scullers, Lee Cooper and Indigo Nation through Central and Brand Factory, exclusive brand outlets and other multi-brand outlets. The company was created after the demerger of the lifestyle fashion businesses of Future Retail and Future Ventures. There are 97 Brand Factory stores and 47 Central stores across the country. In fiscal ’19, Future Lifestyle’s net profit rose 50 per cent while revenue rose 27 per cent. Brand Factory had same-store sales growth of 14 per cent in the last financial year.