Chanel Billionaire’s Son Builds $110 Million Private Equity Firm

The son of one of Chanel’s billionaire owners is building a team to help run his private equity venture as a huge luxury goods fortune trickles down to the fourth generation.

David Wertheimer, 37, whose father Gerard is one of the brothers behind the purveyor of expensive handbags and tweed suits, started Luxembourg-based 1686 Partners last year to invest in fashion, cosmetics and lifestyle products. The firm, which raised more than $110 million as of December, has picked up the pace of hiring in recent months.

Andreas Ernst, a former manager at Skopos Impact Fund, has joined as ...