Investors have long seen fashion as a risk. But while the sector benefited from increased interest from both brands and investors in the early days of the pandemic, now, that wariness has returned.

Rising inflation, the crisis in Ukraine and a slowdown in consumer spending has left many brands searching a small crowd for new backers. In the first quarter of 2022, total transaction value in the global M&A market dropped to $725 billion, nearly 23 percent lower than the previous quarter, according to research firm Global Data.

“I think we are entering a new world,” said Elsa Berry, managing director and founder of Vendome Global Partners. “All the rules we know about are no longer there.”

On the latest edition of BoF LIVE, Gary Wassner, chief executive of Hilldun Corp.; Elsa Berry, managing director and founder, Vendome Global Partners; and Pierre Mallevays, Stanhope Capital’s co-head of merchant banking join BoF chief correspondent Lauren Sherman to discuss the fluctuating appetite for fashion acquisitions and how inflation and consumer spending will affect the current climate.