ENK Gets Financial Backing, Prepares for New Show in L.A.

New York–based trade show producer ENK International is ready to move into fifth gear.

The 25-year-old company, which recently announced it has taken on an equity partner in Wall Street investment firm Forstmann Little & Co., is looking to expand its presence on the West Coast by launching a new contemporarywear trade show.

But, that’s only the beginning. By aligning with Forstmann, ENK gets access to additional capital. While both parties declined to say how much the investment was worth, Forstmann representatives said it was a substantial amount.

ENK founder Elyse Kroll, who will remain chief executive officer, hinted that her company might be in an acquisition mode. Last year, the company staged 22 events covering men’s, women’s and kids’ fashion and footwear.

The company currently is selling booth space at theMezzanine Los Angeles show, set to debut Oct. 20–23 during Los Angeles Fashion Week in downtown Los Angeles’ Twin Springs building.

The New York version of Mezzanine, which is part of the Coterie show, includes about 30 labels and emerging talent. Previous New York participants have included Los Angeles–based Pegah Anvarian, Grey Ant and Jenni Kayne.

If the Mezzanine Los Angeles show comes to fruition, it would disperse the L.A. market scene to five venues: Twin Springs, the California Market Center, The New Mart, Cooper Design Space and the Gerry Building.

Twin Springs, a historic twin-building complex in the 400 block of Spring Street, is a relative newcomer to the trade show arena even though it is just six blocks away from The Intersection at Ninth and Los Angeles streets, the main hub of the Fashion District. Twin Springs was sold in 2002 to fashion industry entrepreneur Henri Levy, who operates several fashion showrooms in the building. Last year, the complex staged the P.KaBu fashion show during Los Angeles Fashion Week.

Levy said the Mezzanine show will take place on the second floor, where there is about 36,000 square feet of vacant space available. “This will be a good fit because it will be dealing with high-end fashion and that’s what’s doing good right now,” Levy said.

Money to fuel expansion

The Mezzannie show could further fragment the local fashion scene, but competitors welcome the prospect.

“More good product out there will bring more buyers to L.A.; I support it,” said Ed Mandelbaum, principal of Designers & Agents, which puts on trade shows at The New Mart and Cooper Design Space.

Mandelbaum’s business partner, Barbara Kramer, said Designers & Agents is directed to a specific type of buyer. “In my opinion, there are other points of view in addition to ours that are equally valid in the marketplace that we do not address with our show,” she said. “If there is a need for another venue that covers a wider scope that does not attempt to duplicate what we are already doing, they are most welcome.”

Aligning with Forstmann gives ENK a link to Cleveland- based IMG, which Forstmann acquired 18 months ago. IMG’s sports and entertainment division produces Olympus Fashion Week in New York and the Mercedes- Benz Fashion Week at Smashbox Studios in Culver City, Calif., as well as international fashion events.

IMG also has the world’s largest modeling agency and manages such big-name entertainers and athletes as golfer Tiger Woods and tennis player Maria Sharapova.

Forstmann, a powerhouse on Wall Street, has invested more than $10 billion in companies like Revlon Inc., Gulfstream Aerospace, General Instrument and Ziff Davis Media. The firm currently holds substantial ownership interests in Citadel Broadcasting Corp. and 24 Hour Fitness Worldwide Inc.

“Forstmann Little is the ideal partner ... as they will provide tremendous support and expertise,” Kroll said in a prepared statement. “We plan to leverage this remarkable existing platform to hellip; create even greater opportunities for our customers to do business in the global fashion marketplace.”

The transaction, which is expected to close later this month, is subject to regulatory approval.