Consumer-focused private equity firm L Catterton is scouting for investment opportunities in earlier-stage, fast-growth companies in Asia and is expected to announce a transaction in the coming weeks.
The strategy to ramp up investments in the burgeoning sector is driven by former Sequoia Capital executive Anjana Sasidharan, who joined the firm in February. Sasidharan, based in Mumbai, oversees investments across India and Southeast Asia.
The move also marks the firm’s shift in focus from brick-and-mortar retail investments that were a mainstay of its earlier Asia-focused funds, given the recent acceleration towards online and hybrid business models.
Going forward, L Catterton will remain focused on the three major consumer markets of China, Japan, and India, while maintaining a presence in South Korea, Southeast Asia, Australia and New Zealand.
The firm will also continue to look at beauty, and health and wellness sectors.
L Catterton is currently deploying capital out of its third Asia fund, which it closed in 2019 above target at $1.45 billion.
Earlier this month it invested 20 billion yen in Japanese healthcare services provider PHC Holdings.
It also invested in Chinese soft drinks brand Genki Forest, along with Warburg Pincus and Sequoia Capital China. Other investors in the transaction included Singapore state investor Temasek Holdings.
Investments from L Catterton’s previous funds include luxury bar Cé La Vie, restaurant chain Crystal Jade, Australian swimwear brand Seafolly, and Japanese eyewear chain Owndays.
DealStreetAsia recently reported that Crystal Jade, in which L Catterton invested $100 million for a majority stake in 2014, has been in the market to rake in an investment. There were also reports that L Catterton and its co-investor Mitsui & Co are looking to exit Owndays, which they invested into in 2018.
Separately, L Catterton has launched a $250 million special purpose acquisition company (SPAC) to pursue high-growth companies in consumer technology sectors across Asia.
L Catterton Asia was formed in 2016 when L Capital Asia, headed by former managing partner Ravi Thakran, became a part of global consumer-focused private equity firm L Catterton, which was in turn formed by the combination of PE firm Catterton, luxury goods company LVMH, and Group Arnault, the family holding company of Bernard Arnault.