l catterton: LVMH-backed L Catterton to step up India investments

The world’s largest consumer-focused funding platform, L Catterton, expects a major influx out of its Asia fund in direction of India the place it sees a surge in funding alternatives, as home consumption is coming again after a stoop of two years brought on by the Covid pandemic, a senior government stated.

L Catterton, backed by Paris-based luxurious merchandise large LVMH Moët Hennessy Louis Vuitton, considers India as its high-priority market and ranks it above a number of different markets in Asia, managing director and head of South and Southeast Asia Anjana Sasidharan advised ET.

“India is likely one of the agency’s key markets in Asia and can account for a good portion of investments from L Catterton’s $1.45 billion Asia fund. And we do wish to guarantee that there may be energetic participation from an India vantage level, as a result of we’re fairly bullish in regards to the development prospects general of India, even relative to a number of the different Asia markets,” she stated.

The US-headquartered personal fairness fund, which was among the many first set of traders pumped in cash when Mukesh Ambani raised Rs 1.27 lakh crore in Reliance Jio platforms in the midst of the Covid pandemic, appears to take a position $20-150 million throughout a spread of sectors together with magnificence & private care, edtech, well being & wellness, packaged meals & beverage, and pet care, Sasidharan stated. “Offers might span Collection-B to pre-IPO fundraising rounds, and will contain minority or majority stakes. We see the India market general as being at a stage of nascence of many classes as they’re getting developed, as shoppers get an increasing number of mature. This offers a candy alternative to construct high quality enterprise over time,” she stated.

Final month, L Catterton led a $50 million funding in Sugar Cosmetics. Previous to that, it invested $250 million in

Jio and has a Rs 178 crore publicity to . The agency, which counts iconic manufacturers corresponding to Pepe Denims and Bliss amongst its portfolio companies, had beforehand invested in PVR, Fab India and Genesis Colors. It made a Rs 375 crore funding to take management of Impresario Leisure & Hospitality, which operates informal eating manufacturers and hangout bars like Smoke Home Deli, Salt Water Cafe and Social.

“There are fairly a couple of sectors in India which can be nonetheless in a nascent stage and, general, a number of years of secular development forward of it. This makes a case of long-term funding for us within the area,” Sasidharan stated.

L Catterton manages $30 billion globally throughout six totally different funds. In 2016, L Capital, the funding arm of LVMH, managed by French billionaire Bernard Arnault, merged its operations with US fund Catterton to create the consumer-focused funding platform.

“The important thing distinguishing characteristic about us as a fund is that we’re very consumer-focused. We attempt to preserve our strategy throughout markets, and guarantee that a number of the insights and the approaches we take straddle throughout markets,” she stated.

Client tech was one of many core areas that attracted the most important chunk of personal fairness inflows in 2021, based on a report by Bain & Co.

“A lot of 2021’s deal exercise was in shopper tech and IT/ITeS, a sign of the increasing share of development captured by the tech and web sectors. The 2 sectors mixed represented greater than 60% of the yr’s deal worth at practically $44 billion, and symbolize the sector’s resilience and attractiveness by way of uncertainties as enterprise fashions in these sectors tailored sooner than conventional fashions in different sectors. Additional, VC and development fairness surpassed all development estimates, hovering to $38.5 billion from roughly $10 billion 2020,” Bain & Co stated in its India personal fairness report on Wednesday.

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