Catterton raises $2.1bn for oversubscribed funds

The firm’s seventh buyout fund closed on its $1.6bn hard-cap after initially targeting $1.2bn. Catterton’s second growth fund hit its $400m hard-cap after three months in market.

Catterton Partners has closed its seventh buyout fund on $1.6 billion and its second growth fund on $400 million, according to a statement from the firm. 

Catterton launched Fund VII in 2012 with an initial target of $1.2 billion, which the firm reached in June. Catterton raised the fund’s hard-cap from $1.5 billion to $1.6 billion, after the vehicle was oversubscribed.

Catterton Growth Partners II closed on $400 million after just three months in market. Its initial target was $300 million with a $350 million hard cap, but the firm increased the hard cap to $400 million. 

The $2.1 billion total includes a GP-commitment, according to a source familiar with the fund.

Both funds target control-oriented investments in high-growth consumer companies. Catterton will use capital from Fund VII to invest between $40 million and $250 million in 15 to 18 companies. Target companies will have enterprise values between $100 million and more than $1 billion. To date, the vehicle has invested in sandwich-chain Primanti Brothers, kitchen and bath fixtures company PIRCH and CorePower Yoga. 

Catterton’s growth fund targets companies with enterprise values less than $100 million and has invested in healthy foods company Snap Kitchen, according to the statement. 

Both funds were oversubscribed and received commitments from existing and new investors. The Pennsylvania Public School Employees’ Retirement System committed to both vehicles, according to Private Equity International’s Research and Analytics division. 

Catterton’s portfolio also includes Ferrara Candy Company, women's apparel line The Worth Collection and Edible Arrangements.The firm has exited 11 portfolio companies during the past 18 months, including initial public offerings of Restoration Hardware and Noodles & Company.

Connecticut-based Catterton is led by co-managing partners Michael Chu and Scott Dahnke, as well as nine other partners.