The private equity arm of luxury group Louis Vuitton Moët Hennessy (LVMH), L Capital Asia, expects an imminent first close on $800 million for its second Asia-focused vehicle, according to a source close to the matter.
The firm will continue to fundraise until August or September, when it expects to make a final close on its $950 million hard cap, according to the source.
L Capital Asia II has been in the market since February 2013 and the firm is using UBS as a placement agent. The previous fund, a $636 million debut Asia vehicle, closed in December 2010.
Both funds have a similar strategy of investing in branded goods and luxury retail companies across Asia Pacific – a differentiated approach that has helped attract investors, according to Private Equity International’s source.
LVMH tapping private equity opportunities
The firm is run by LVMH Southeast Asia and Middle East chairman Ravi Thakran, who previously held senior management positions at Swatch Group, Nike and Tata.
L Capital has also been investing in the region. In April, it acquired a 49.9 percent stake in R.M. Williams, a luxury boots maker in Australia. The firm didn’t disclose the deal value, but media reports at the time said it was worth A$52 million (€41 million; $54 million). It is unclear which fund the deal was made from.
L Capital Asia is the Asia arm of L Capital Management, which manages funds specialising in branded consumer goods and luxury retail primarily in Western Europe, with an opportunistic focus on North America and Asia.
The firm typically invests between €15 million and €40 million ($20 million and $53 million) in companies with annual revenues between €30 million and €400 million. Targeted sectors are personal care and well-being, home and family equipment, personal equipment and retail, according to PEI's Research & Analytics division.