Catterton hits $1.2bn target

One year after launching its seventh fund, Catterton has hit its target and is working toward its hard-cap.

A year after launching its Fund VII, Catterton Partners’ fundraising is on track to hit its $1.5bn hard-cap.
The firm has already reached its original $1.2 billion target, according to a person familiar with Catterton’s fundraising. It’s not clear when the fund is expected to hold a final close.

Catterton declined to comment.
According to a document filed with the US Securities and Exchange Commission, Ineo Capital is acting as the placement agent for the fund.

The firm’s seventh vehicle will have about 15 to 18 investments between $30 million and $120 million, according to documents from the Pennsylvania State Employees’ Retirement System. Pennsylvania committed up to $100 million to the fund last June.

The Connecticut-based firm invests solely in mid-market North American companies — mostly in the restaurant, food and beverage and retail sectors. This year the firm has made one investment. It acquired Fixtures Living, a home lifestyles company, based in San Diego. According to the firm’s website, Catterton was very active in 2012. During the second half of the year, it invested in French luxury brand Baccarat and fresh fruit company Edible Arrangements.
In 2006, Catterton’s Fund VI collected $1 billion on a $900 million target. According to the Pennsylvania document, the fund was generating an internal rate of return of 9 percent and a 1.3x investment multiple as of December 31, 2011. In 2010, the firm raised an additional $200 million for its Fund VI-B.
Earlier this year the fund launched its second growth fund, focusing on consumer equities between $10 million and $30 million. Its target is $300 million with a $350 million hard-cap. Its 2008 vintage growth fund closed at $300 million.
Founded in 1989, Catterton is led by managing partners Michael Chu, Scott Dahnke and nine other partners.