Private equity firm L Catterton has signed a definitive agreement for a $360 million continuation fund in Asia, the firm said in a press statement.
The fund will be anchored by accounts managed by Nasdaq-listed PE firm Hamilton Lane; it will be supported by New Capital Partners. It will be acquiring a structured minority interest in certain private assets held by the firm’s third Asia-focused fund.
The transaction generates immediate proceeds for the fund’s limited partners while positioning them to capture potential upside along with the New Capital Partners. The proceeds from the transaction will be redeployed by L Catterton’s Asia team into new investments to further enhance the fund’s overall return, it said.
The portfolio comprises companies in targeted categories that have strong consumer demand tailwinds. These include investments in beauty and personal care, consumer services, health and wellness, pet care, as well as specialty food and beverage categories, among others.
“Our research-led investment approach, together with our global experience, operating capabilities, and network of strategic relationships, has helped us strengthen the Fund’s performance over the past two years, despite the impact of the COVID-19 pandemic. The long-term growth prospects of Asia’s consumer industry remain intact, with the expansion of multiple categories underpinned by robust demand fundamentals, and we are well-positioned to capitalize on further investment opportunities,” Chinta Bhagat, L Catterton Asia managing partner said.
Mingchen Xia, Co-Head of Asia Investments at Hamilton Lane added, “Despite the relatively uncertain macro environment, we continue to believe in the fundamental growth of consumer markets in Asia, and in particular the trend of consumption upgrade in emerging Asia driven by the rapid expansion of middle-class consumers.’
UBS Investment Bank advised L Catterton on the transaction.
In May, L Catterton led a $50 million (Rs 388 crore) Series D round in Sugar Cosmetics.
Backed by Paris-based luxury products giant LVMH Moët Hennessy Louis Vuitton, L Catterton has over $33 billion of equity capital across fund strategies and 17 offices around the world. Since 1989, the firm has made over 250 investments in leading consumer brands.