Unlocking Value Through Private Equity Alignment: Ramsbury Invest's Strategic Play in H&M

The Persson family's holding company, Ramsbury Invest, has intensified its accumulation of H&M shares in 2025, acquiring nearly 46 million shares across multiple transactions. These purchases-ranging from 3.2 million B shares in July to a SEK 514 million ($46 million) block in late September-have elevated the family's ownership to 65.36% of H&M's capital and 83.35% of voting rights, according to Reuters. While Ramsbury has denied formal plans to take H&M private, the strategic buildup of shares aligns with private equity strategies that prioritize operational control and value creation in the fashion retail sector, according to Fortune.

Private Equity Playbooks in Fashion Retail

Private equity firms have increasingly targeted the fashion industry, leveraging operational rigor and digital innovation to unlock value. A 2024 Simon Kucher study highlights that 46% of returns in private equity are driven by business improvements, with revenue growth accounting for two-thirds of that figure. For instance, Sycamore Partners and TPG have revitalized brands like Ann Taylor and J.Crew through store network optimization, supply chain modernization, and omnichannel marketing, as shown in an ECA Partners analysis. Similarly, a London-based luxury retailer secured $18 million in private equity funding to expand internationally and enhance digital engagement, demonstrating how capital can catalyze growth, according to a Dexovise case study.

Ramsbury's approach mirrors these strategies. By consolidating control, the Persson family could streamline H&M's operations, reduce costs, and accelerate investments in AI-driven design and sustainability-critical differentiators in a market where 64% of U.S. consumers prioritize value, according to a Business of Fashion report. The family's increased voting power also positions it to push through structural changes, such as divesting underperforming segments or refocusing on core markets, without shareholder resistance.

Risks and Rewards of Privatization

A potential privatization of H&M would require significant debt to acquire the remaining shares, a move that could constrain operational flexibility during a period of intense competition from fast-fashion rivals like Zara and Shein, according to a CorpDev analysis. However, private equity-backed buyouts often provide the agility to pivot strategies without public market pressures. For example, H&M's stock has declined 60% since 2015, creating a valuation gap that a buyout could exploit, as noted by Fashnfly. Analysts speculate that Ramsbury could pursue privatization within two years if its share purchases continue at the current pace.

The fashion retail landscape in 2025 further underscores the urgency for transformation. With 41% of consumers turning to secondhand platforms and off-price retailers, H&M must innovate to retain relevance. Private equity strategies-such as enhancing direct-to-consumer channels, adopting 3D design tools to reduce waste, and leveraging data analytics for personalized marketing-could address these challenges while boosting margins, as ECA Partners suggests.

Conclusion

Ramsbury Invest's strategic share purchases reflect a calculated alignment with private equity principles aimed at unlocking value in a fragmented fashion retail sector. While the path to privatization remains uncertain, the Persson family's control provides a blueprint for operational and digital reinvention. For investors, the key question is whether H&M can leverage this capital and control to adapt to shifting consumer preferences and outmaneuver competitors-a challenge that will define its future in the next 24 months.