L Capital partnering with Catterton to create a global equity firm
today Jan 5, 2016
A major change for some major companies. L Capital, the financial arm of LVMH and the Arnault family, which recently invested in Ba&sh, Pepe Jeans and El Ganso, and which also backs SMCP, has with American private equity firm Catterton created a new entity, L Catterton, 40% of which will be jointly owned by LVMH and the Groupe Arnault.
The aim is to become the world's largest consumer-focused investment firm. Once it has settled its accounts, L Catterton expects to grow its assets under management to more than $12 billion. Above all, the operation allows both partners to join their geographic forces.
L Catterton will bring together 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, reads the official press release.
The new structure will have two headquarters, one in London, England and the other in Greenwich, Connecticut, on the American east coast. Each fund will continue to be managed by its own team, with regional offices around the globe. In the release, Bernard Arnault recalls that LVMH and the Groupe Arnault have been investors in Catterton since 1998.
L Capital has lately been becoming more invested in the lifestyle, cosmetics and hotel trade sectors, working alongside companies. "We enter their capital through the repurchase of shares or an increase in capital with the desire to help these companies grow over three to six years," said Daniel Piette, Chairman of L Capital, who Bernard Arnault intends to keep at his side at LVMH, to FashionMag.
L Catterton will be led by Global Co-CEOs J. Michael Chu and Scott A. Dahnke, currently Managing Partners at Catterton. The transaction is expected to close early in 2016.
Bruno Joly (with Monica Karski)
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