Is it time to start investing in fashion? If you ask the folks at Temasek Holdings, the answer is yes. The Singapore-based investment company has acquired a 10 per cent stake in Ermenegildo Zegna Group, which owns the Italian luxury fashion brand Zegna, as well as Thom Browne and Tom Ford Fashion.
According to WWD, Ermenegildo Zegna Group has agreed to sell 14.1 million shares to Temasek at US$8.95 per share, for a total of US$126.4 million (around S$162.9 million).
Temasek previously purchased 12.7 million ordinary shares of the Italian luxury group, which is publicly listed on the New York Stock Exchange. Following its latest transaction, which closes on 30 July, Temasek will hold a total of 26.8 million shares—equivalent to 10 per cent—of Ermenegildo Zegna Group.
With Temasek’s financial investment, Ermenegildo Zegna Group aims to accelerate the growth of its brands, which includes expanding into international markets and opening new retail stores.
“I am delighted to welcome Temasek as a strategic investor in our group’s shareholder base,” said Gildo Zegna, chairman and CEO of the group. “Their investment is a strong endorsement of our vision and long-term growth potential, while firmly recognising the global significance of the Italian luxury sector. With Temasek’s partnership, we are even better positioned to help strengthen our organic expansion globally and to reinforce our unique role as a custodian of truly authentic brands.”
Temasek will make a valuable partner for the Ermenegildo Zegna Group. A statement from the latter highlighted “Temasek’s wealth of experience in the luxury sector and deep knowledge of the Asian market”.
Nagi Hamiyeh, head of Europe, the Middle East and Africa of Temasek, commented on the partnership, saying, “Ermenegildo Zegna Group has successfully established itself in the high-end luxury segment and presents significant long-term value creation opportunities across each brand. Our investment in them underscores our ongoing commitment to support leading European businesses with strong track records and global potential.
“We look forward to being a thoughtful, long-term partner to the Zegna family and management team, empowering them to execute on their growth strategy and supporting their vision to elevate their iconic brands and global footprint.”
Following the transaction, Hamiyeh will also join the luxury firm’s board of directors as a non-executive member.
This isn’t Temasek’s first fashion investment. In 2016, the state-owned firm acquired an equity stake in Moncler, the Italian-French luxury fashion brand known for its puffer jackets. Tan Chong Lee, Temasek’s head of Europe at the time, said in a statement, “This investment represents Temasek’s largest commitment to an Italian company to date. Italy is home to leading consumer and industrial businesses that have considerable export and international growth potential.”
In that same year, Temasek also contributed to an US$110 million investment in Farfetch, the London-based fashion e-commerce platform.
In 2017, Temasek acquired a 30 percent stake in the Italian techwear label Stone Island for an undisclosed amount. (Moncler purchased Temasek’s Stone Island stake in 2020, completing its acquisition of Stone Island’s parent group, Sportswear Company S.p.A.)
As of March 2025, Temasek’s net portfolio value is S$434 billion.
READ MORE
Singapore Fashion Council Launches Asia’s First Fashion-Focused Ideathon: TBFI Launch Pad