Authentic Brands raises $500 million in funding from General Atlantic By Reuters

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(Reuters) -Authentic Brands Group has raised $500 million from its existing investor General Atlantic, bringing the private equity firm’s investment in the apparel chain operator to nearly $2 billion.

The funding, announced on Thursday, underscores a resurgence of the private funding market after a rough 2022.

Hopes that the easing of rate hikes in the United States will prevent the economy from sliding into a long and punishing recession have helped investors regain some of their risk appetite.

Authentic did not disclose the valuation at which the latest funds were raised, but a report from Bloomberg News earlier said the round valued the Aéropostale owner at $20 billion.

Nearly four months after submitting its IPO paperwork in 2021, Authentic Brands sold stakes to private equity firms CVC Capital Partners and HPS Investment Partners in a fundraise that gave it an enterprise value of $12.7 billion.

Months later, in early 2022, Authentic shelved its listing plans even before the U.S. central bank had begun its monetary tightening campaign.

The New York City-based company’s empire spans over more than 40 brands including Forever 21, Sports Illustrated and intellectual property rights of Marilyn Monroe, Elvis Presley, Muhammad Ali and Shaquille O’Neal.

“Looking ahead, we believe Authentic is positioned for continued diversification across categories, license partners, geographies and distribution channels,” Andrew Crawford, managing director and global head of consumer at General Atlantic, said in a statement.

Authentic’s investors include some of the biggest names from the private equity and asset management industry, including BlackRock (NYSE:), Leonard Green & Partners and Canada’s Brookfield.