Retail conglomerate Authentic Brands Group announced Monday that it has postponed its initial public offering to instead raise capital from two private equity firms.

ABG Founder and Chief Executive Officer Jamie Salter said the company now plans for an IPO date in 2023 or 2024 and is selling off a chunk of the business to CVC Capital, hedge fund HPS Investment Partners and a pool of existing stakeholders. The company has an enterprise value of $12.7 billion.

“We [had] pursued an IPO so that we could bring value to ABG and its shareholders,” said Salter in a company press release. “We are achieving exactly that with the onboarding of new equity partners."

New York City-based ABG owns retail chains Forever 21 and Barneys New York, as as well media conglomerate Meredith Corp., among other brands.

Salter told CNBC in an interview that despite a robust IPO market and his expectation that ABG would have fetched a substantial valuation, he preferred to stay private. The company was founded in 2010.

CNBC reported that Authentic Brands was seeking a valuation of about $10 billion in its IPO when it made the filing on July 6, 2021. The new deal will value Authentic Brands at $12.7 billion, according to Salter, who has signed on to remain CEO for five more years.

The transaction with CVC and HPS is expected to close in December 2021, with each entity to retain a seat on Authentic Brands’ board of directors.

BlackRock will keep its position as Authentic Brands’ largest shareholder, which it has held since 2019, the company said. Other investors include U.S. mall owner Simon Property Group, General Atlantic, Leonard Green & Partners, Brookfield and retired basketball star Shaquille O’Neal.

“We have known CVC and HPS for many years and are thrilled that they are coming on board as significant stakeholders in ABG,” Salter said in the ABG release on Monday. “Their commitment is a testament to the exceptional work our team has put forth as well as CVC and HPS’ confidence in our future growth.”

Salter said the deal will enable ABG to maintain “a laser focus on brand development, digital innovation, e-commerce, specialty retail, expansion into new verticals and proven business models.”

Known for aggressively going after struggling brands and relaunching them as its own, ABG’s global portfolio is diverse and includes 30 brands spread out among “media, entertainment, luxe, fashion, street, wellness, home, active and outdoor lifestyle sectors,” according to the company’s website.

The company has been on a growth spurt of late. ABG announced in June that it would acquire Izod, Van Heusen, Arrow and Geoffrey Beene. It will add sneaker maker Reebok in an acquisition that is expected to close on Feb. 28, 2022. Salter said the company made a deal with Iconic images last week.

The move to hold off on an IPO is counter to the recent wave of retail companies that have entered the public market to take advantage of the high demand. They include eyeglasses maker Warby Parker, eco-friendly shoe brand Allbirds and e-commerce fashion site Lulu’s.

When it filed to go public on July 6, Authentic Brands reported that its net income in 2020 jumped to $211 million from $72.5 million a year earlier, while its revenue rose about 2% to $489 million based on the Aeropostale brand and Sports Illustrated magazine posting strong earnings growth.