- Angela Gonzalez-Rodriguez |
LVMH has joined forces with investment firm Groupe Arnault - the family holding company of Bernard Arnault - and consumer-focused private equity firm Catterton to create L Catterton, a consumer-focused private equity firm.
L Catterton will couple Catterton's buyout expertise with LVMH's global presence to invest in brands and companies with "high growth opportunities in categories with attractive consumer economics," as all parties advanced in a statement on Tuesday.
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.
Cattenon to own 60 percent with LVMH and Groupe Arnault jointly holding 40 percent
Under the terms of this agreement, L Catterton will be 60 percent owned by the partners of L Catterton and 40 percent jointly owned by LVMH and Groupe Arnault.
Thus, L 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.
L Catterton expects to grow its assets under management to more than 12 billion dollars after various successor funds are closed.
The new company will be headquarters will be in Connecticut and London, with regional offices across Europe, Asia and Latin America.
Global Co-CEOs J. Michael Chu and Scott A. Dahnke, currently Managing Partners at Catterton, will head L Catterton, although 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 Mr. Arnault, Chairman and 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. I would also like especially to thank Daniel Piette whose entrepreneurship and leadership have been instrumental in creating and developing the L Capital franchise over the past 15 years. I very much look forward to continuing to collaborate with him at LVMH."
On his side, Chu said, "We are excited to announce this transformative combination and partnership with LVMH and Groupe Arnault. The breadth of our collective expertise will be second to none in the consumer industry, and we look forward to benefiting from the strength and global reach of the team at L Capital and L Real Estate as we continue to seek out investment opportunities with significant growth potential."
"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 economic,” further added Chu.
The transaction is expected to close early in 2016, subject to customary regulatory and certain investor approvals.