L Catterton to sell several Asia interests to Hamilton Lane-led consortium for $360m

Consumer-focused private equity firm L Catterton Asia is selling some of its portfolio investments in Asia to accounts managed by US-based alternative investment management firm Hamilton Lane for at least $360 million.

In a separate filing with the US SEC, L Catterton said it has raised $368.5 million in the continuation transaction that involved 10 investors.  The investors reportedly include Singapore’s GIC.

In a statement, L Catterton said the transaction involves the creation of a continuation fund that will be anchored by Hamilton Lane and other institutional investors. The fund will be acquiring a structured minority interest in certain private assets held by the L Catterton’s third Asia-focused fund, which is currently at the midpoint of its investment cycle.

The L Catterton transaction is understood to not include companies that are publicly-listed, as well as Fund 3’s most recent investments, such as SUGAR Cosmetics in India.

Fund 3 closed in 2019 at $1.45 billion, and its portfolio comprises 15 to 20 companies in targeted categories supported by strong consumer demand.

The companies in Fund 3 include Indonesian online beauty startup Sociolla, consumer dental brand Zenyum, Chinese beverage companies Genki Forest and Heytea, Chinese e-commerce aggregator Nebula Brands, and Japanese eyewear chain OWNDAYS.

Investments from L Catterton’s previous funds include luxury bar Cé La Vie, and restaurant chain Crystal Jade.

A so-called continuation fund is a new vehicle that will take on one or multiple portfolio investments from an existing fund. The scheme provides liquidity to the limited partners in the existing fund ahead of the end of the fund’s lifespan, which typically lasts for 10 years.

Per the announcement, L Catterton will redeploy the proceeds from this transaction into new investments to further enhance the Fund 3’s overall return.

“We are pleased to announce this transaction, which is beneficial to both the fund’s existing investors and the new capital partners as we continue driving growth. We welcome Hamilton Lane and the other new investors on our ongoing journey of building high-performing consumer businesses in the region,” said L Catterton Asia managing partner Chinta Bhagat.

Hamilton Lane names Victor Jung head of digital assets

In another development, Hamilton Lane announced the appointment of Victor Jung as head of Digital Assets, a newly-created role.

Jung, who was most recently head of Distribution Partners & Liquid Private Markets, Asia Pacific, at Partners Group, will take charge in developing and overseeing the execution of Hamilton’s digital asset strategy. He will report directly to Frederic Shaw, chief risk officer and global head of operations.

The creation of the new role and the appointment of Jung comes as Hamilton seeks to broaden its digital asset offering. It recently partnered with Singapore-based digital securities exchange ADDX for the tokenisation of its global private assets und.

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