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The Carlyle Group Reportedly Values Supreme at $1 Billion

Supreme founder James Jebbia confirms sale of a minority stake of Supreme as part of the deal

10th Oct 2017

According to Women's Wear Daily, secretive streetwear brand Supreme has allegedly sold a 50% stake in its business to the Carlyle Group for approximately $500 million. If the reports are true, then this would value Supreme's enterprise at around $1.1 billion, $1 billion in equity and $100 million in debt.

According to the website's sources, the deal was kept secret because Jebbia feared that if the sum became public knowledge, that the commercial tint would hurt the street credibility that Supreme has carefully guarded since its establishment.

The report further claims that the fashion brand has projected earnings of $100 million. Sitting at a valuation that is 10x revenue, commentators have speculated as to what Supreme will look to do with that money. Where a typical brand would look to expand its production, Supreme is a brand that is built off exclusivity and the fact that more people want the product than are actually able to get it.

Despite the speculation, Supreme's true financial statistics are broadly unknown. WWD speculates that the projected earnings represent significant growth from the current revenue that Supreme generates, which means that some of the investment may be used to expand the business further into Asia, where the brand already has 6 stores. Given that each of those stores are in Japan, all stars would point to China, Korea and Hong Kong as potential growth markets for the US brand.

Whether such an expansion will impact the exclusive, cult status that the brand has cultivated remains to be seen. But it's certainly an interesting financial move from one of fashion's most rebellious players.

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