PE firm L Catterton’s new Asia-focused SPAC eyes $250m in US IPO

Photo: Bloomberg

L Catterton Asia Acquisition Corp, a special purposed acquisition company (SPAC), launched by consumer-focused private equity firm L Catterton, has filed to raise up to $250 million in an initial public offering (IPO) in the US.

In its filing with the US Securities and Exchange Commission, the Singapore-based blank cheque company indicated plans to offer 25 million units at $10 each, with every unit consisting of one share of common stock and one-third of a warrant, exercisable at $11.50.

The proposed deal size will give L Catterton Asia Acquisition a market value of $313 million.

The SPAC, led by managing partners of L Catterton Asia, said it has not selected any potential business combination target at the moment but stressed that it may pursue an initial target business in high-growth, consumer technology sectors across Asia.

“We believe the consumer market environment in Asia is highly compelling and presents massive value creation opportunities,” the firm said in the filing.

Asia is expected to represent approximately 50 per cent of the global GDP and is on track to account for 40 per cent of global consumption by 2040, the SPAC added.

“While consumers globally are increasingly connecting to brands through digital content, online communities, and influencer-driven recommendations, nowhere are we seeing the impact of digitization more markedly than in Asia,” the company said.

L Catterton has $22 billion in assets under management. Founded in 1999, the PE firm has invested in more than 200 companies. In 2019, the firm closed its third Asia fund at $15 billion to back more retail and healthcare companies across the region.

SPACs are companies without operations that are formed only to raise capital to acquire other businesses. Merging with a SPAC has become an increasingly popular method for closely-held businesses to raise capital for growth.

SPACs typically acquire firms as quickly as four to five months. They are given up to two years to seek targets. If they cannot fulfill that mandate, they will have to return all the money to the public shareholders.

Aspirational Consumer Lifestyle II, the second blank cheque company formed by former L Catterton Asia head Ravi Thakran, has also filed to raise up to $300 million in an initial public offering in the US.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.