A fund controlled by the Qatari royal family has bought Italian luxury fashion house Valentino from Red & Black, a company controlled by Permira Funds and Italian textile group Marzotto.

Mayhoola for Investments signed the deal, understood to be worth EUR700m (US$853.7m), yesterday (11 June). The agreement also includes the M Missoni licence business. 

The MCS Marlboro Classics brand is being carved out from the Valentino Fashion Group and will remain under the ownership of Red & Black. The company will also continue to hold a majority stake in Hugo Boss.

Private-equity firm Permira and the Marzotto family acquired Valentino through Red & Black in 2007 as part of a wider transaction which included Hugo Boss.

"Valentino has always been a brand of unique creativity and undisputed prestige," said a Mayhoola spokesperson.

"We are impressed by the work of the two creative directors, Maria Grazia Chiuri and Pierpaolo Piccioli, and by the management team led by Stefano Sassi. Their ability to blend the aesthetic values of the founder, Valentino Garavani, with a contemporary and sophisticated vision, has been instrumental in enhancing the brand's relevance and establishing a platform with significant future potential.

"Our vision is to back management for the long term to exploit the full potential of this exciting brand. We believe Valentino is ideally suited to form the basis for a global luxury goods powerhouse".

Valentino saw revenue rise 23% over the first-half of this year against the prior year.