LVMH, Catterton Partner to Create L Catterton, a Private Equity Firm

In What's New, Industry News by Accessories Staff

Logo of the new company

Logo of the new company

Greenwich, CT and Paris–Catterton, a consumer-focused private equity firm, LVMH, the world’s largest luxurygoods conglomerate, and Groupe Arnault, the family holding company of Bernard Arnault, announced today that they have entered into an agreement to create L Catterton.

The new partnership will combine Catterton’s existing North American and Latin American private equity operations with LVMH and Groupe Arnault’s existing European and Asian private equity and real estate operations, currently conducted under the L Capital and L Real Estate franchises. Under the terms of this agreement, L Catterton will be 60% owned by the partners of L Catterton and 40% jointly owned by LVMH and Groupe Arnault.

Largest Consumer-Focused Investment Firm

Catterton will become the largest global consumer-focused investment firm with six distinct and complementary fund strategies focusing on consumer buyout and growth investments across North America, Europe, Asia and Latin America, in addition to prime commercial real estate globally. Catterton expects to grow its assets under management to more than $12 billion after various successor funds are closed. With a 27-year history and more than 120 investment and operating professionals in 17 offices across five continents, Catterton will be poised to leverage its global network and expertise to partner with consumer businesses in all major consumer markets.

Catterton’s headquarters will be in Greenwich, CT and London, with regional offices across Europe, Asia and Latin America. Catterton will be led by Global Co-CEOs J. Michael Chu and Scott A. Dahnke, currently managing partners at Catterton. Each fund will continue to be managed by its own dedicated team in their respective locations across Europe, Asia and the Americas.

“We are delighted to partner with Catterton and its team,” said Bernard Arnault, chairman/ceo of LVMH and Groupe Arnault. “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. Having been investors in Catterton’s funds since 1998, we have participated in its growth and success, evidenced by its strong track record and its distinctive culture.”

“The globalization of media and technology, combined with increasingly permeable geographic borders, is driving rapid consumer growth on an unprecedented global scale,” said Dahnke. “Together, Catterton and L Capital will create a global consumer investing franchise with unmatched access to resources in the industry. We expect this combination to further our mission of investing in high growth opportunities in categories with attractive consumer economics.”

The transaction is expected to close early in 2016, subject to customary regulatory and certain investor approvals.

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