L Catterton raises $2.75bn for eighth flagship fund

Limited partners were attracted by the ability to commit to a global consumer platform and by the new partnership with LVMH’s L Capital.

Nearly a year after the merger between Catterton and LVMH's L Capital, L Catterton has closed its eighth consumer buyout fund, L Catterton Partners VIII, on $2.75 billion, above its initial $2.5 billion hard-cap.

Almost all existing investors re-upped in Fund VIII and the firm, which provided a 5 percent GP commitment to the fund, also brought in less than a handful of new limited partners. 

Investors were attracted by the ability to commit to a global consumer platform and by the new partnership with L Capital, LVMH and Group Arnault. 

LVMH has been an investor in Catterton since 1998 and continues to be an LP in this most recent fund. L Capital was started in 2001.

The firm's predecessor fund closed in 2013 on $1.7 billion, and is now fully invested since the last transaction closed in August. With co-investments, the firm deployed almost $3 billion.

With the new fund, L Catterton will continue to make investments between $60 million and $500 million each in about 10 to 20 high-growth mid-market consumer companies across North America and Europe. 

Catterton and L Capital agreed to a strategic partnership in January and launched Fund VIII shortly after in late February. It took less than six months to raise the fund, but the firm spent some time allocating the capital between LPs before holding a final close. 

It has been a busy year for L Catterton, particularly on the fundraising front. It has been raising its Latin America fund, L Catterton Latin America Fund II, which is anticipated to close in early 2017.

Prior to launching the eighth fund, L Catterton, which now has $14 billion in assets under management, also wrapped up its growth fund, L Catterton Growth Partners III, on $615 million, above its $500 million target.

The firm has already closed on three transactions out of its growth fund and anticipates it will make its first investment out of Fund VIII at some point in the first quarter of 2017.

It also plans on launching its Europe-focused fund next year, followed by its Asia-focused fund.