L Catterton to Sell Various Asia Interests for $360m

L Catterton

Private equity company L Catterton will sell minority interests in some of its portfolio investments in Asia to accounts managed by Hamilton Lane and other institutional investors for $360m.

The transaction covers companies in sectors that include beauty and personal care, consumer services, health and wellness, and pet care, L Catterton and Hamilton Lane said in a statement Thursday.

A person familiar with the matter said the deal involves more than a dozen of L Catterton’s private investments.

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L Catterton, backed by LVMH Moët Hennessy Louis Vuitton SE’s chairman, Bernard Arnault, specializes in investments in the consumer sector and manages around $33 billion of assets. In Asia, the company’s investments have focused on China, India and Japan, with an expanding footprint in Southeast Asia.

The company is planning an initial public offering and could fetch a valuation of $3 billion, The Wall Street Journal previously reported.

The deal announced Thursday involves the creation of a so-called continuation fund, which typically means setting up a new fund to take on one or multiple portfolio investments from an existing fund. Such transactions, which have gained popularity in recent years, can provide liquidity to the limited partners in the existing fund ahead of the end of the fund’s lifespan, which typically lasts for 10 years.

The continuation fund, L Catterton’s first in Asia, will draw portfolio investments in the company’s third Asia-focused fund, which closed in 2019 with a size of $1.45 billion.

Source: MarketWatch

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