Luxury fashion house Versace is looking for a financial investor to help it expand without making acquisitions.

Currently, the business is jointly owned by Allegra, the niece of murdered company founder Gianni Versace, Gianni's sister Donatella who owns 20 per cent, and his brother Santo, who owns 30 per cent.

Allegra wants to sell some of her holding to pay the estate tax incurred when she inherited the stake.

According to the Financial Times, Gucci has already turned down the opportunity to acquire a minority stake in the company. Industry watchers say LVMH and Texas Pacific Group, the US private equity company that owns shoe manufacturer Bally, are both possible investors.