L Catterton mulls GP-led process on Asia fund – updated

The retail-focused firm, which is seeking $1.25bn for Asian investments, wants more time to manage the assets in its 2009-vintage fund.

L Catterton has joined the ranks of managers exploring the secondaries market to offer liquidity to existing investors, Secondaries Investor has learned.

The Greenwich, Connecticut-headquartered firm, which came about through the 2016 merger between a private equity firm, a luxury goods house and a family holding company, is mulling a GP-led process on its 2009-vintage buyout fund, according to three sources familiar with the matter.

The firm wants extra time to manage the remaining assets in L Capital Asia, the sources said. It is understood that high-net-worth individuals make up a large proportion of the LP base.

Evercore is advising on the process, which is in its early stages, Secondaries Investor understands.

The exact nature of the GP-led process and which assets are held in the fund is unclear.

L Capital Asia raised $637 million of its $1 billion target by final close in 2010, according to PEI data.

L Capital Asia was the first of two Asia-focused vehicles raised by L Capital, the European and Asian private equity operations of luxury fashion house LVMH and family-owned holding company Groupe Arnault.

Groupe Arnault owns Christian Dior, which in turn owns LVMH, according to its 2017 annual report.

In 2016 L Capital and sister entity L Real Estate merged with Catterton Partners, a North American and Latin American private equity firm, to create L Catterton. The firm is 60 percent owned by its partners and 40 percent jointly owned by LVMH and Groupe Arnault.

L Catterton is in market with its third pan-Asian buyout fund seeking $1.25 billion, PEI reported last year. It has raised $844 million as of June 2018.

Sanjay Gujral, managing director for India of L Catterton Asia, will join Everstone Group as chief operating officer on 1 August after more than seven years at the firm, sister publication Private Equity International reported on Monday.

Deal volume of Asia-focused funds nearly doubled to 14 percent of total funds sold in the first half of the year, according to Greenhill Cogent’s Secondary Market Trends & Outlook, July 2018, published on Tuesday.

In mid-July Secondaries Investor revealed that TPG is exploring tender offers on its 2008-vintage Asia Partners V and 2013-vintage Asia Partners VI funds in a process managed by Lazard.

L Catterton did not return a request for comment. Evercore declined to comment.

– Adam Le contributed to this report.

– This article was updated to show it is unclear which assets are held in the L Capital Asia fund.