NPS to invest $100 mn in consumer-focused L Catterton’s $2.5 bn fund

  • 2016-10-07

South Korea’s National Pension Service (NPS) will commit $100 million to a new fund that L Catterton, a consumer-focused private equity firm, is currently raising for the amount of $2.5 billion, in what would be the first investment the fund house attracts from a South Korean institution.

The NPS’s investment review committee has recently approved of the investment plan, impressed by steady performance of L Catterton’s consumer goods funds which had incurred no losses, according to investment banking sources on Oct. 6.

“It is an example showing that NPS is ready to invest (in a fund) with a small AUM, if they have professionalism and track records,” said one of the sources.

The private equity firm was formed this year through the partnership of Catterton, LVMH and Groupe Arnault, in which Catterton’s North American and Latin American private equity operations were combined with LVMH and Groupe Arnault’s European and Asian private equity and real estate operations. The combination will create the world’s biggest consumer-focused private equity firm, L Catterton said in a statement issued last January.

L Catterton’s investments span all major consumer segments, ranging from restaurant franchise, cosmetics, skin care and jewelry to spa chain. Now the combined entity, L Catterton, is known to be gearing up for buyout deals through funds raised from global pension funds.

The fund-raising follows the $615 million growth fund that L Catterton closed in February, which targeted high-growth consumer companies in North America. Catterton’ previous two North America-focused growth funds had raised $420 million and $316 million in 2013 and 2008, respectively. Catterton was founded in 1989.

By Daehun Kim and Dongwook Jwa

daepun@hankyung.com

<Edited by Yeonhee Kim>