Quick Facts
- Private equity fashion deals have fallen 50% in 2026, dropping to just 6.7% of transactions.
- Licensed brand management companies have completed over 50 fashion brand acquisitions so far in 2026, up 52% year over year.
- Average deal valuations have risen to 9.8 times EBITDA in 2025 and 2026, up from 7.7 times during 2023 and 2024.
Private equity firms are retreating from fashion. Licensed brand management companies are filling the void fast.
Acquisitions by brand management companies now account for nearly 70% of the fashion M&A market in 2026, according to data from Capstone Partners’ consumer investment banking group. PE-backed deals have fallen 50% and represent just 6.7% of transactions.
The shift reflects a structural mismatch. Fashion brands require capital tied up in physical inventory, carry long lead times before profits materialize, and face volatility from factors like tariffs. That combination makes them unattractive to traditional PE buyers seeking faster returns.
Who Is Buying
Authentic Brands Group remains the dominant player. ABG’s portfolio drives roughly $32 billion in annual retail sales, a figure set to climb to $38 billion following its deal to take Guess private. ABG holds a 51% stake in Guess’s intellectual property under that agreement.
ABG’s acquisition run also includes Champion from HanesBrands, Dockers from Levi Strauss for $311 million, and Lee Jeans from Kontoor Brands for up to $1 billion, including a $750 million initial payment and a $250 million earnout. The Lee brand generates approximately $1.5 billion in annual retail-equivalent sales across 73 countries. S&P Global said the Lee deal further solidifies ABG’s position as the second-largest licensor globally, behind only Disney.
ABG CEO Jamie Salter described the Dockers acquisition as a natural fit: “It’s a brand with deep roots, high awareness and a solid foundation in licensing — all things we look for when acquiring new brands.” Salter has also indicated ABG expects to go public within the next 12 months.
WHP Global is closing in on $9.5 billion in global retail sales after announcing a deal to acquire Marc Jacobs from LVMH. The transaction, structured as a 50/50 joint venture with G-III Apparel Group, values the brand at around $1 billion. G-III will acquire Marc Jacobs’ operating business and hold a long-term licensing agreement. WHP also acquired Vera Wang, bringing the founder on to continue overseeing the brand.
WHP CEO Yehuda Shmidman outlined the firm’s acquisition criteria: “We look for brands that have awareness, purchase intent to the desired audience. We look for brands that are already great brands, that are big brands that are established.”
Bluestar Alliance purchased Dickies from VF Corporation for $600 million in cash. The deal adds a brand with over 100 years of workwear history to a portfolio that already includes Palm Angels, Off-White, and Scotch and Soda. Bluestar’s portfolio now represents more than $13 billion in global retail sales, supported by over 600 licensees.
Bluestar CEO Joey Gabbay said of the Dickies acquisition: “Its 100+ years legacy rooted in workwear has evolved to be fully embraced by fashion, skate, and streetwear communities.”
Marquee Brands acquired Stance in November 2025 alongside a licensing partnership with United Legwear and Apparel Co.
Market Context
The broader fashion licensing industry grew 8.1% in 2024, making it one of the top-performing categories within a global brand licensing market worth more than $369.6 billion, according to the Licensing International 2025 Global Licensing Industry Study.
Top brand aggregators have collectively announced or completed 29 acquisitions in the apparel, footwear, and accessories space since 2023, per Capstone’s report. Consumer resilience has helped push both deal volume and valuations upward across the category.
For brand founders and operators, the takeaway is clear. The most active buyers in fashion are now brand management platforms built around licensing, not traditional PE firms seeking operational control and quick exits. That changes negotiation dynamics, deal structures, and what happens to a brand after it sells.
