L Capital Management, a private equity firm backed by LVMH Group and its holding company Groupe Arnault, has raised €400m for its latest fund.
The firm which specialises in lifestyle brands and retail, beat its original €350m target for this third fund, the firm said on Friday. The firm has offices in Paris, Milan and Madrid and buys majority or minority equity interests, in mid-market companies with enterprise values of up to €400 million.
The company has over time become more independent of LVMH. Philippe Franchet, senior partner at L Capital Management, said: "A vast majority of the funds come now from international institutional investors, sovereign funds, pension funds, university endowments and large family offices."
Franchet added: "Changing demographics, consumer behavior and emerging new market segments in mature economies in Europe and the US, an increasing wealthy middle-class and emergence of important, powerful economies in China, India, South-East Asia and South America create significant demand for lifestyle brands."
Daniel Piette, chairman at L Capital Management, said: "Working in partnership with management teams and drawing upon the worldwide resources and expertise of the LVMH Group and L Capital Asia – a sister fund focused on Asia, with offices in Singapore, Mumbai and Shanghai – L Capital Management’s goal is to develop world-class brands and retail businesses benefiting from growing global consumption trends."
Capstone Partners was L Capital’s placement agent, and it was advised by law firm SJ Berwin on the legal and tax structuring of the fund.