Luxury consumer goods giant LVMH has made its first big merger of 2016 by joining forces with Catterton, the leading consumer-focused private equity firm, and Group Arnault to create global focused private equity firm, L Catteron.
Headquartered in Greenwich, CT and London, L Catteron will have six distinct fund strategies focusing on growth investments and consumer buyouts in North America, Europe, Asia and Latin America. Headed up by Global Co-CEOs J. Michael Chu and Scott A. Dahnke, currently Managing Partners at Catterton, the company will also focus on prime commercial real estate globally.
Thanks to its 27-year history and more than more than 120 investment and operating professionals in 17 offices across five continents, the company hopes to grow its assets under management to more than $12 billion. This will be following various successor funds being closed.
The deal is expected to close early this year following customary regulatory and investor approvals.
Mr. Arnault, Chairman and CEO of LVMH and Groupe Arnault, said, “We are delighted to partner with Catterton and its team. 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.”
Dahnke continued, “The globalization of media and technology, combined with increasingly permeable geographic borders, is driving rapid consumer growth on an unprecedented global scale. 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