LVMH's First RMB Fund Settles in China
- Chaileedo Press
- Nov 1, 2022
- 2 min read
LVMH's largest consumer private equity fund has settled in China, marking that L Catterton's China team will cover the full cycle of investments in consumer sectors including overseas, beauty and personal care in both RMB and USD.
(Credit: L Catterton official website)
Recently, L Catterton, the world's largest consumer private equity fund under LV, completed the first closing of its first RMB fund, which has a target size of 2 billion yuan (about $275 million), and the first closing amount exceeded expectations. At the same time, L Catterton officially announced its Chinese name "路威凯腾" (Lu Wei Kai Teng) and the first phase of its RMB fund in Chengdu High-tech Zone.
L Catterton was formed by the merger of two funds in 2016. Catterton, a U.S. consumer private equity fund covering North America and Latin America, and L Capital, a private equity and real estate business covering Europe and Asia, which belongs to LVMH and the Arnault Group, the holding company of the Bernard Arnault family. Following the merger, L Catterton leapt to become the world's largest consumer private equity fund. Today, L Catterton has 9 investment platforms worldwide, offices in 17 cities, a team of over 190 people and over 250 cumulative investments.
The LPs contributing to the L Catterton RMB Fund are mainly composed of local financial contribution platforms and domestic and overseas industrial contributors. Among them, Chinese domestic and international industrial LPs include industrial capital of global head consumer companies, food and beverage industry giants, beauty and apparel listed companies, etc.
Phase I of L Catterton RMB Fund will focus on early-stage consumer investments, which marks L Catterton China team's full-cycle coverage of eight consumer segments, including overseas, beauty and personal care, food and beverage, pet, healthcare, consumer technology, new retail and apparel fashion, in both RMB and USD.
Li Jing, Head of L Catterton RMB Fund, said, "As the world's second largest commodity consumer market, China has a significant market scale advantage, along with the continued upgrading of the consumption structure. L Catterton is long-term optimistic about the development of China's consumer industry. We look forward to helping our portfolio companies and partners to jointly complete the grafting of industry resources globally, upstream and downstream business resources, and actively establish international ecological cooperation on a global scale."
At this point, L Catterton's global capital management scale has exceeded $33 billion.
(Credit: from website)
Currently, L Catterton has invested in a number of beauty companies, including Chinese beauty and skincare brand Marubi. It is worth noting that in May this year, Marubi disclosed in the announcement that the company received the "Report on Change of Equity in Simplified Form of Guangdong Marubi Biotechnology Co., Ltd" from L Capital Guangzhou Beauty Ltd, a shareholder holding more than 5% of the company's shares, on May 22, 2022, in which L Capital reduced its holding of 6,908,340,000 shares through bulk trading, representing a reduction of 1.71926%.
In response to the reason for this shareholder reduction, Marumi had said in the announcement, "In view of the long time of L Capital's shareholding in Marubi, as an equity investment company, it has its own capital exit needs." Some industry insiders believe that "after the decline of Marubi's performance, shareholders have no investment patience."
Source: L Catterton Officialy
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