Catterton launches seventh fund targeting $1.2bn

The Connecticut-based consumer specialist is in market with its seventh buyout fund, targeting $300m more than its predecessor fund that closed in 2006.

Catterton Partners has launched its seventh buyout fund, which has a $1.2 billion target, according to documents filed with the US Securities and Exchange Commission.

Catterton invests exclusively in consumer businesses in the North American mid-market, focusing on retail, restaurant, food and beverage, marketing services and consumer brands. The firm’s sixth fund collected $1 billion on a $900 million target in 2006, after which the firm raised an additional $200 million for Fund “VI-B” in 2010. Fund VI-B had generated a net IRR of 10.5 percent as of 30 September, 2011, according to performance data from the California Public Employees’ Retirement System.

Limited partners in Fund VI include the Pennsylvania Public School Employees’ Retirement System, the New York City Employees’ Retirement System and the New Mexico State Investment Council.

Catterton was not available for comment at press time. Ineo Capital is acting as placement agent for Fund VII, according to SEC documents.

Last week, Catterton invested in gourmet restaurant chain Mendocino Farms, using capital from the firm’s $300 million growth fund that closed in 2008. The fund, Catterton’s only growth vehicle focused on the lower mid-market, invests between $10 million and $30 million per deal.

Greenwich, Connecticut-headquartered Catterton was founded in 1989 and has over $2.5 billion of equity capital under management.