Singapore's state investor Temasek has deepened its position in the Italian menswear icon Ermenegildo Zegna Group, acquiring a 10% stake. The investment, valued at US$126.4 million, reflects a maturing partnership model where Asian institutional capital is becoming a force behind global brand expansion, without the need to buy the whole business.

Temasek will now hold 26.8 million shares of the NYSE-listed Zegna Group ( ZGN ), following a direct purchase of 14.1 million treasury shares at US$8.95 per share, matching the stock’s volume-weighted average over the past month.

The Singapore fund had already amassed 12.7 million shares through market purchases, but this latest agreement formalizes the relationship. The share purchase is also expected to see Nagi Hamiyeh, head of EMEA at Temasek, joining the Italian menswear group’s board of directors in June 2026.

For Zegna, the capital strengthens balance sheet flexibility, priming the group for organic global growth, especially in underpenetrated markets. For Temasek, it’s a continuation of a portfolio-wide theme: invest in branded, durable assets with scalable narratives and Asian resonance.

In FY2024, Zegna reported €1.95 billion ( US$2.25 billion ) in revenue, a robust performance for a menswear-driven group, but still modest compared to that of LVMH or Kering. This is where Temasek’s financial heft and regional insight can stretch Zegna’s reach, especially in Asia-Pacific, where luxury is increasingly local and digital.

Chairman and CEO Gildo Zegna welcomed Temasek as a “strategic investor”, describing the partnership as an endorsement of the group’s long-term vision and a bridge to new growth corridors. “With Temasek’s partnership,” he says, “we are even better positioned to help strengthen our organic expansion globally.”

As well as capital, Temasek brings Asian consumer insights, a vast portfolio network, and a seat at the table that could prove influential as Zegna increases its Asian footprint. This includes not just China, but also Southeast Asia and India, where luxury tastes and demand are evolving.

This latest investment is not Temasek’s first venture into the fashion and retail sector. It previously backed Charles & Keith, Global Blue, and Moncler ( via affiliate investors ). But Zegna is arguably its most symbolic fashion investment to date.