HIG Whitehorse, the credit arm of investment firm HIG Capital has arranged a €15 million loan for Varova Fashion, a Dutch fashion retailer and wholesaler.
Varova is based in Amsterdam and operates 12 retail and wholesale fashion brands in the Benelux region. Its three largest brands operate 110 retail stores between them and target very different markets in terms of age, price and fashion content. Varova’s sales have risen by an average of 12% a year over the past three years.
HIG Whitehorse is providing the loan under a flexible financing structure. The funding will be used to support further expansion into Europe and investment by the business into its infrastructure platform, which supports its brands.
Herman Vocking, Principal at HIG WhiteHorse, said: “This transaction demonstrates HIG WhiteHorse’s ability to tailor a bespoke, flexible and deliverable debt package to support Varova Fashion as it capitalises on opportunities arising from its multi-channel approach and verticalisation trends within the fashion industry. We look forward to supporting its future success.”
Varova is backed by Varova Investments, a Dutch investment firm which has a majority firm in the firm. Varova Investments mainly invests in European companies which make and sell consumer goods or industrial products.
Maarten Vaessen, Co-Founder of Varova Investments, said: “This transaction provides Varova Fashion with the flexibility to continue investing in its strong growth trajectory and further build on our current strong market position. HIG WhiteHorse has been supportive and demonstrated a high degree of flexibility and pragmatism in providing us with a solution that suited our requirements and we look forward to working with HIG WhiteHorse as a financing partner.”
HIG Whitehorse specialises in providing flexible debt financing solutions for middle market companies in Europe and the US which have revenues of €40 million or more.