L Catterton closes 3rd North American Growth fund

L Catterton Growth Partners III started fundraising last month, targeting $500m, and is the first fund to close since Catterton combined with LVMH and Groupe Arnault’s private equity and real estate holdings.

L Catterton has closed its third North American growth fund, L Catterton Growth Partners (LCGP) III, on $615 million, exceeding its $500 million target. It began fundraising in January, according to the fund's 12 January filing with the US Securities and Exchange Commission, marking a close in about a month.

It is the first fund to close since US-based Catterton Partners partnered in January with luxury retail conglomerate LVMH and French family office Groupe Arnault to combine private equity and real estate holdings and create a consumer-focused giant, as reported by Private Equity International.

The fund was oversubscribed and drew commitments mainly from returning investors, the firm said. The total amount encompasses commitments from the general partner, limited partners and strategic partners of the firm.

Investors in LCGP III include the Pennsylvania Public School Employees’ Retirement System, which committed $100 million, and the Missouri Local Government Employees’ Retirement System, according to PEI’s Research & Analytics division.

LCGP III will target control-oriented investments in high-growth consumer companies in North America that are expanding at double or triple digit rates and require between $10 million and $50 million of capital.

“This is an exciting time to be investing in consumer growth as old consumer categories are being re-imagined and new consumer categories are being created,” L Catterton Growth managing partner Jonathan Owsley said in a statement.

Catterton Partners owns 60 percent of L Catterton, LVMH 20 percent and Groupe Arnault 20 percent of the new firm. A source close to the matter told PEI at the time of the partnership announcement that the firm was on the cusp of raising capital across multiple new funds.

Through this fund closing and others to come, it is targeting more than $14 billion in assets under management, it said.

LCGP III’s predecessors, Catterton Growth Partners II and Catterton Growth Partners, closed in September 2013 and April 2008 on $420 million and $316 million, respectively.