L Catterton Asia’s third fund exceeds target, raises over $1.28b so far

A file photo of Ravi Thakran, managing partner, L Capital Asia, who said that the company has been unable to identify any compelling opportunities in India. Photo: Mint

L Catterton Asia, the regional arm of US-headquartered global private equity firm L Catterton, has so far raised over $1.28 billion for its third Asia buyout fund, exceeding an initial target of $1.25 billion set last year, according to an SEC filing.

The filing for L Catterton Asia 3 Sing LP, did not specify the target offering amount although it said that 40 investors have committed to the fund. The fund made an initial close at $844.4 million in June last year.

L Catterton Asia’s funds have seen a consistent increase in corpus over the years. Its previous fund, L Capital Asia II, had closed at $950 million in 2014, above an initial target of $800 million.

L Catterton Asia is a unit of L Catterton, one of the largest consumer-focused private equity firms in the world. The global firm itself was formed through the partnership of Catterton, LVMH and Groupe Arnault and claims to have over $15 billion of equity capital across six fund strategies in 17 offices globally.

Some of the portfolio firms of L Catterton Asia in the region include Indian fashion retail firm Future Lifestyle Fashions, in which it acquired a 10 per cent stake recently, Pepe Jeans, GXG, Lo Luxe and SEAFOLLY.

“L Catterton Asia seeks to partner with well-positioned and distinctive businesses in attractive consumer categories that we target,” the firm says on its website.

In November 2018, L Catterton Asia led a private equity round in Chinese fitness club operator Will’s Group. It also invested in Owndays, a Singapore-based manufacturer of fashion-forward eyewear.

Last month, DEALSTREETASIA reported that Ravi Thakran, star rainmaker at L Catterton Asia, and key members of his management team are set to create a new PE firm and are in talks with the parent firm to secure its backing.

The new entity will target to raise at least $500 million for a regional growth vehicle, which will focus on investments in new and rapidly growing companies in Asia, instead of more established businesses favoured by traditional buyout funds.

The new entity could be structured as a joint venture between the executives and L Catterton, said one executive close to the development.

“L Catterton continues to view Asia as a critical and strategic area of focus for the firm. Given the many opportunities presented to us, we are committed to investing more time and more resources to ensure high performance and strong execution across the various initiatives and funds in the region,” an L Catterton spokesperson had said in response to a query.