IFC Commits $30 Mn To L Catterton’s $600 Mn India Fund

SUMMARY

IFC has also proposed a co-investment envelope of up to $30 Mn under delegated authority in the L Catterton India Fund

Launched last year by L Catterton Asia and former HUL executive Sanjiv Mehta, L Catterton India Fund is targeting total commitments of up to $600 Mn

The Fund is expected to invest in 7–9 companies, with average ticket sizes ranging from $25 to $150 Mn per company

The International Finance Corporation (IFC), the private investment arm of the World Bank, has proposed a $30 Mn infusion in India-focussed consumer fund launched by L Catterton Asia and former Hindustan Unilever Ltd (HUL) executive Sanjiv Mehta.

The duo formed the investment vehicle named L Catterton India Fund (Fund I or the Fund) last year.

In its disclosure, IFC also proposed a co-investment envelope of up to $30 Mn under delegated authority in the L Catterton India Fund.

The Fund is targeting total commitments of up to $600 Mn, with L Catterton’s commitment capped at 19.9% of the total.

It is expected to invest in 7-9 companies, with average ticket sizes ranging from $25 Mn to150 Mn per company.

“The Fund is seeking to raise up to $600 Mn in aggregate capital commitments. IFC proposes an equity investment of up to $30 Mn in the Fund (capped at 19.9% of the total commitments in the Fund),” IFC said in a disclosure.

Formed last year, the Fund is a private equity vehicle focused on providing growth capital to mid-market companies in India’s consumer sector. Its primary areas of focus include food and beverage, consumer services (including healthcare), retail and restaurants, and consumer brands.

As per the disclosure, the Fund will be managed by L Catterton Mumbai Advisory Services Limited, a private limited company domiciled in India.

The India portfolio of L Cattertron, which is backed by LVMH, includes PVR Ltd, SUGAR Cosmetics, Farmley, Drools, Jio, Fabindia, among others. Overall, L Catterton has assets under management (AUM) of $37 Bn and claims to have made over 275 investments since its inception in 1989.

Meanwhile, IFC is one of the largest global development institutions focused on the private sector in emerging markets. It has previously invested in PE funds such as A91 Partners, Aavishkaar VI, Lighthouse IV, Multiples IV, among others, in India.

As of April 30, India represents IFC’s largest investment market globally, with a portfolio exceeding $8 Bn, of which approximately 36% is allocated to equity investments.