Tara Patel and Angelina Rascouet
The billionaire family behind Chanel is on track to pocket at least $US21 billion ($29.4 billion) from payouts over the past decade, a huge windfall as their brand prospers during a downturn hitting some luxury-good rivals.
The Wertheimer clanโs Cayman Islands-based holding company for Chanel is set to receive $US5.8 billion in dividends for 2025, more than half of which will be paid this year, according to a UK filing. Thatโs on top of the approximately $US15.1 billion of payouts amassed by the family in the intervening years since 2017.
The huge dividends have helped propel septuagenarian brothers Alain and Gรฉrard Wertheimer into the ranks of the worldโs wealthiest dynasties. They inherited the company, known for its โฌ10,500 ($17,700) quilted flap bag and tweed outfits, from their grandfather, one of the original business partners of creator Gabrielle โCocoโ Chanel. Sales growth last year outpaced that of market leader LVMH Moรซt Hennessy Louis Vuitton which owns Christian Dior Couture.
Alain, 77, and Gรฉrard, 75, have a combined net worth of about $US85 billion, according to the Bloomberg Billionaires Index. Theyโre credited with owning equal shares of Chanel through offshore holding company Mousse Investments Ltd., which feeds into New York-based Mousse Partners, one of the worldโs largest and most discreet family offices, run by half brother Charles Heilbronn.
The brothers are media-shy and secretive. Closely-held Chanel reports financial results just once a year, generally presented by top executives from outside the family. Alain Wertheimer is Chanelโs global executive chairman, while Gรฉrard is no longer listed as a director.
Last week, the French firm reported 2025 revenue rose 1.8 per cent on a comparable basis to $US19.3 billion. The numbers indicate the maker of No. 5 fragrance showed greater resilience over the period than LVMH, the worldโs largest luxury conglomerate founded by Bernard Arnault, while still lagging growth at Hermes International SCA.
LVMHโs Louis Vuitton, Chanel and Hermes form an exclusive trio of top-end fashion brands whose annual sales have risen since the post-pandemic boom to hover around the $US20 billion mark. While LVMH doesnโt break out earnings for each of its approximately 75 labels, leather goods maker Louis Vuitton has been a major source of growth.
Like Chanel, these labels have also proved extremely lucrative for their owners over the past decade, according to Bloomberg calculations. Arnault through the end of last year pulled in about โฌ23 billion in dividends from his investment holdings โ mostly made up of his stake in LVMH โ while the extended multi-generational family behind Hermes pocketed around โฌ7.2 billion.
The latest Chanel earnings confirm the Wertheimers received a dividend of $US5.7 billion for 2023 but didnโt take a payment for 2024 when the company reported heavy spending on marketing and upscale property acquisitions.
Chanel โhas always maintained a very consistent financial policy with a zero net debt at year-end, in all circumstances,โ according to a representative, who declined to comment on the timing of dividend declarations.
The brothers have also taken steps to diversify their holdings. Mousse Investments describes itself as having a โbroad range of asset classes in public and private marketsโ in addition to Chanel. While Mousse Partners doesnโt disclose how much money it controls, some companies have named it as a participant in deals or as a shareholder. That points to investments in stocks, real estate, credit and private equity.
Over the years, Mousse Partners has backed a wide range of startups including mental health provider Brightside Health, digital advertising firm Brandtech Group, biotechnology company Evolved by Nature, food company Harmless Harvest and health-care provider Thirty Madison. In 2024 Mousse joined the billionaire LโOreal heiress in investing in high-end clothing brand The Row.
The family office has been listed as having a roughly 8 per cent stake in French digital entertainment company NetGem SA and 5.7 per cent in hair products maker Olaplex Holdings, which Henkel agreed to buy earlier this year. Gรฉrard Wertheimerโs son, David, is backing an investment fund putting money into lifestyle companies.
Bloomberg
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