Temasek Holdings, the Singapore state-owned investment firm, has taken a 10 percent stake in the Ermenegildo Zegna Group, the Italian luxury menswear group, in a deal worth about $220 million. The transaction was announced on 29 July 2025.
Zegna will sell Temasek 14.1 million new shares at $8.95 each, raising $126.4 million. Temasek had already bought 12.7 million Zegna shares on the open market. Together, the purchases give it 26.8 million shares, or 10 percent of Zegna's outstanding ordinary shares.
As part of the agreement, Nagi Hamiyeh, Temasek's head of Europe, the Middle East and Africa, will join Zegna's board as a non-executive director after the group's next shareholders' meeting.
“We are delighted to welcome Temasek as a strategic investor in our group.”
Gildo Zegna, chairman and chief executive, Ermenegildo Zegna Group
Why it matters
Zegna said the investment would strengthen its financial flexibility for organic growth. The group plans to speed up international expansion, open new stores and renovate existing ones. Hamiyeh said Temasek wanted to be a long-term partner for the Zegna family and management, and that the deal reflected its commitment to backing leading European companies.
The Zegna family remains in charge of a business that began in 1910 as a woolen mill in Trivero, in northern Italy, and grew into a global menswear group. Today the group owns three brands, Zegna, Thom Browne and Tom Ford Fashion, employs more than 7,100 people and reported 2024 revenue of $2.19 billion. Its shares are listed in New York.
Zegna began as a mill and still runs a textile division alongside its brands, so it controls more of its chain, from fabric to finished suit, than most menswear labels. A long-term shareholder gives that model more financial room, and the stated plan to invest in stores means more places where customers can try on and order Zegna tailoring.
The deal was announced a day before Zegna reported its second-quarter sales. Group revenue for the quarter fell 3 percent on an organic basis to $526 million, while sales through its own stores and website rose 8 percent and wholesale was cut back. First-half revenue was $1.04 billion, down 2 percent on an organic basis. Tom Ford Fashion grew 11 percent organically in the quarter, and the Zegna brand 2 percent.
The deal came as the group was moving its namesake brand toward high-end leisurewear as well as tailoring, and as Haider Ackermann was rebuilding Tom Ford's fashion business under Zegna's license. Neither brand's creative direction is affected by the investment.
Gildo Zegna described the industry backdrop as highly complex and challenging, and said that with Temasek as a partner he was even more confident the group could reach its goals. Temasek's arrival also brings a large outside investor onto the register of a company that remains controlled by the founding family.
