Global consumer-focused private equity firm L Catterton has marked the first close of its India-centric investment vehicle at around $200 million, VCCircle has gathered.
L Catterton had so far been placing bets on Indian firms through its Asia fund. However, a year ago, it roped in former CEO and managing director of Hindustan Unilever Ltd, Sanjiv Mehta, to deepen India-focused investments.
The L Catterton India Fund I, a category II alternative investment fund (AIF), has a target of $400 million with an additional greenshoe option of $200 million. It will invest in seven to nine companies across sectors such as food and beverage, consumer services including healthcare, retail and restaurants, and consumer brands. Each investment is expected to range between $25 million and $150 million.
In May, VCCircle reported that the fund was set to secure a $30-million commitment from International Finance Corporation. Apart from IFC, asset management firms, development finance institutions, insurance companies, family offices, and corporate houses have also made commitments, a person familiar with the matter told VCCircle.
The wealth management arm of Kotak Mahindra Bank has also committed to the first close. Kotak Private Wealth has been engaged as a distributor of the fund and its clients are among those who committed to the first close, the person said.
The fund has already made its first deployment when it led a $40-million (about Rs 340 crore) Series C round in nuts and dry fruit brand Farmley in May.
L Catterton declined to comment on VCCircle's queries for this article.
Launched in 1989, L Catterton is backed by Paris-based luxury brand LVMH Moet Hennessy Louis Vuitton. The PE firm has assets under management of $35 billion spread across private equity, credit, and real estate.
The firm has made about 275 consumer-centric investments. Some of its well-known bets in India include beauty and personal care brand Sugar Cosmetics, petcare company Drools, Reliance Jio, and clothing brand Fabindia.
L Catterton also manages a pan-Asian fund, investing across China, Singapore, and Japan. It has made at least three investments in Indian companies through this fund, deploying over $1 billion. L Catterton's other investments include Cholula Hot Sauce, Ferrara Candy Company, Goodles, Kettle Foods, Kodiak, Little Moons, NotCo, Planted, and Plum Organics.
