A new athlete-backed fund connected to luxury powerhouse LVMH has reportedly made its first investment, taking a stake in the U.S. performance apparel brand Rhoback.
This isn't just another investment; it's the convergence of three powerful trends: the strategic expansion of luxury into sports, the rise of athletes as serious investors, and the strong growth of niche activewear brands. By acquiring a piece of Rhoback, LVMH is doing more than just adding another brand to its portfolio; it's building a new kind of growth engine.
The logic behind this move becomes clearer when we look at LVMH's recent actions. First, the company has been systematically building its presence in the sports world. Through high-profile partnerships like being a Premium Partner of the Paris 2024 Olympics and a decade-long deal with Formula 1, LVMH has been weaving its luxury brands into the fabric of global sports culture. This investment in Rhoback is the next logical step, moving from sponsoring events to owning a piece of the action in the performance apparel market.
Second, the deal is powered by a new vehicle called CHAMP, a fund created by LVMH-backed L Catterton and Patricof Co. Patricof's specialty is its network of over 200 professional athletes who act as investors, or LPs, in the fund. This transforms athletes from mere endorsers into brand owners. For Rhoback, this means gaining not only capital but also an authentic, built-in distribution and marketing channel through athletes who genuinely use and believe in the product.
Finally, the timing is opportune. The market backdrop makes this private deal particularly compelling. On one hand, U.S. sports participation reached a record 250 million people in 2025, providing a strong tailwind for activewear demand. On the other hand, the stock market valuations for established public activewear companies like Lululemon and Nike are currently depressed. This environment makes investing in a private, high-growth brand like Rhoback an attractive way to generate returns through operational improvements and brand building, rather than just relying on rising market valuations.
In essence, this partnership creates a powerful flywheel. Rhoback gets the capital and strategic expertise of LVMH, plus the authentic reach of athlete-investors. LVMH gets a foothold in the booming activewear market, turning its massive sponsorship spending into a direct, ownable growth opportunity.
- Omni-channel: A retail strategy that integrates different methods of shopping, such as online, mobile, and physical brick-and-mortar stores, to provide a seamless customer experience.
- P/S Ratio (Price-to-Sales Ratio): A valuation metric that compares a company's stock price to its revenue. It is calculated by dividing the company's market capitalization by its total sales over a 12-month period. A low ratio could imply the stock is undervalued, and vice versa.
- LPs (Limited Partners): Investors in a private equity or venture capital fund. They provide capital but are not involved in the fund's day-to-day management, and their liability is limited to the amount of their investment.