Private equity firm Catterton and LVMH have partnered to create L Catterton, which pairs Catterton's existing North American and Latin American private equity operations with LVMH and Groupe Arnault's existing European and Asian private equity and real estate operations.
"The globalization of media and technology, combined with increasingly permeable geographic borders, is driving rapid consumer growth on an unprecedented global scale."
L Catterton will be 60% owned by the partners of L Catterton and 40% jointly owned by LVMH and Groupe Arnault. The new entity will grow its assets under management to more than $12 billion, according to an official announcement.
The transaction is expected to close early in 2016, subject to customary regulatory and certain investor approvals.
Further reading: Luxola Acquired By Sephora Parent Company LVMH
"The globalization of media and technology, combined with increasingly permeable geographic borders, is driving rapid consumer growth on an unprecedented global scale," said Scott Dahnke. "Together, Catterton and L Capital will create a global consumer investing franchise with unmatched access to resources in the industry. We expect this combination to further our mission of investing in high growth opportunities in categories with attractive consumer economics."
"We are delighted to partner with Catterton and its team," said Bernard Arnault, chairman and CEO of LVMH and Groupe Arnault. "L Catterton will provide investors with a unique value creation platform, bringing together our global network and industry expertise with Catterton's long-standing operational approach to building value in consumer investments. Having been investors in Catterton's funds since 1998, we have participated in its growth and success, evidenced by its strong track record and its distinctive culture. I would also like especially to thank Daniel Piette whose entrepreneurship and leadership have been instrumental in creating and developing the L Capital franchise over the past 15 years. I very much look forward to continuing to collaborate with him at LVMH."