(PRNewswire) Catterton will merge with LVMH’s private equity and real estate investment arms, giving birth to a $12bn global PE & RE investment firm. This new firm is planning to establish local presence in LatAm.
Catterton, the leading consumer-focused private equity firm, LVMH, the world leader in high-quality products, 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.
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 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, L Catterton will be poised to leverage its unique global network and expertise to partner with consumer businesses in all major consumer markets.
L Catterton’s headquarters will be in Greenwich, CT and London, with regional offices across Europe, Asia and Latin America. L 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. Detailed descriptions of Catterton and L Capital / L Real Estate are included below.
“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.”
Mr. 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 benefitting 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.”
“The globalization of media and technology, combined with increasingly permeable geographic borders, is driving rapid consumer growth on an unprecedented global scale,” said Mr. 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.