The terms of the deals were not disclosed yet, but analyst believe Balmain is valued at as much as 500 million euros.

With this deal it is expected that the French-based fashion house can accelerate its development, namely through the opening of new stores abroad.

Mayhoola is widely believed to be a vehicle for Sheikha Moza bint Nasser as-Missned, the mother of the Qatari emir, Sheikh Tamim.

Back in 2011, the same Qatari fund bought Valentino, the Italy-based haute couture house, from private equity firm Permira, in a deal involving roughly 700 million euros.

Balmain was founded in 1945 by French designer Pierre Balmain and bought by Alain Hivelin ten years later.

Private equity funds have been very active acquiring European fashion brands with high potential to have their products sold in fast-growing markets such as China. Last year Roberto Cavalli was bought by Italian firm Clessidra and in 2014, Blackstone purchased a stake in Versace.