France-based luxury goods producer LVMH joined forces with buyout firm Catterton and investment firm Groupe Arnault, both already backed by LVMH, yesterday to launch a consumer-focused private equity firm.
The firm, dubbed L Catterton, will combine the activities of Catterton, which is active in North and Latin America, with LVMH and Groupe Arnault’s European and Asian investment operations, currently conducted under the L Capital and L Real Estate banners.
L Catterton is expected to begin operations in early 2016, subject to regulatory and investor approval, and aims to reach $12bn in assets once all of its six funds are closed. The funds will focus on buyouts and growth investments in the consumer sector, as well as commercial real estate.
The firm will be 60% owned by Catterton, with the remaining 40% held by LVMH and Groupe Arnault. LMVH and Groupe Arnault first invested in funds run by Catterton in 1998.
L Catterton will be jointly based in the US and the UK, with regional offices in Europe, Asia and Latin America. It will be led by global co-chief executives J Michael Chu and Scott Dahnke, currently managing partners at Catterton.
Bernard Arnault, chairman and CEO of LVMH and Groupe Arnault, said: “We are delighted to partner with Catterton and its team.
“L Catterton will provide investors with a unique value creation platform, bringing together our global network and industry expertise with Catterton’s long-standing operational approach to building value in consumer investments.”