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L Catterton To Sell $360 Mn Worth Of Holdings From Asian Startups


L Catterton has only pulled out private equity investments in startups from its Fund 1 and Fund 2, sparring Indian startups SUGAR and Reliance Jio, who were part of its Fund 3

The $360 Mn funds will be pumped back in L Catterton’s Asia-focussed $1.45 Bn fund

For one, the VC firm has already sold its stake in Impresario, an entertainment and hospitality chain that operates Smoke House Deli and Prithvi Cafe

US-based consumer-focussed private equity firm L Catterton’s Asian arm is selling some of its portfolio investments in Asia to US-based alternative investment management firm Hamilton Lane for $360 Mn.

According to reports, it has filed a regulatory filing with the US SEC, stating that it has raised $368.5 Mn in the continuation transaction that involved 10 investors, including Singapore’s GIC.

For the uninitiated, a continuation transaction is where a VC firm sells a stake from one or multiple portfolio investments from an existing fund. The scheme provides liquidity to the limited partners in the existing fund before the fund’s lifespan.

L Catterton has reportedly only pulled out private equity investments in startups from its Fund 1 and Fund 2. According to a Moneycontrol report, the VC firm has already sold its stake in Impresario, an entertainment and hospitality chain that operates Smoke House Deli and Prithvi Cafe.

Other names from which it is selling stake have not been confirmed by the VC firm.

The $360 Mn funds will be pumped back into L Catterton’s Asia-focussed $1.45 Bn Fund 3, acquiring a structured minority interest in certain private assets held by the L Catterton’s third Asia-focused fund. 

Fund 3’s most recent investments include SUGAR Cosmetics and Reliance Jio in India, which are spared from the sell off. 

In a press statement, the company stated that the transaction generates immediate proceeds for the fund’s limited partners while positioning them to capture potential upside along with the New Capital Partners. 

“The proceeds from the transaction will be redeployed by L Catterton’s Asia team into new investments to further enhance the fund’s overall return.”

Founded in 1989, L Catterton has made 250+ investments in consumer brands across the world. It is backed by fashion giant Louis Vuitton, L Catterton backs companies in categories such as beauty and personal care, consumer services, health and wellness, pet care, as well as speciality food and beverage categories, among others.  

With $33 Bn of global assets under its management, L Catterton’s Fund 1 and 2’s investments include Pepe Jeans, PVR, Fab India and Genesis Colours, among others. Fund 3 closed in 2019 at $1.45 Bn value, and its portfolio comprises 15 to 20 companies in consumer internet categories across Asia such as Indonesian startups Sociolla and Zenyum, Chinese startups Genki Forest, Heytea and Nebula Brands, and Japanese eyewear chain OWNDAYS.



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