L Catterton To Sell $360 Mn Worth Of Holdings From Asian Startups

L Catterton’s Asian arm is selling some of its portfolio investments to US-based alternative investment management firm Hamilton Lane for $360 Mn.

SUMMARY

It has reportedly raised $368.5 Mn in the continuation transaction that involved 10 investors, including Singapore’s GIC

The $360 Mn proceeds will be pumped back into L Catterton’s Asia-focussed $1.45 Bn fund

For one, the PE firm is reportedly in talks to sell part of its stake in Impresario to the continuation vehicle

US-headquartered consumer-focussed private equity firm L Catterton’s Asian arm is selling some of its portfolio investments in Asia to a continuation fund anchored by US-headquartered alternative investment management firm Hamilton Lane for $360 Mn.

According to reports, it has filed a regulatory filing with the US SEC, stating that it has raised $368.5 Mn in the continuation transaction that involved 10 investors, including Singapore’s GIC.

For the uninitiated, a continuation transaction is where a PE/VC firm sells a stake in one or multiple portfolio investments from an existing fund to a new vehicle. The scheme provides liquidity to the limited partners in the existing fund before the end of the fund’s lifespan.

L Catterton is reportedly only selling the continuation fund a structured minority interest in certain private assets held by the firm’s $1.45 Bn Asia-focused Fund 3. According to a Moneycontrol report, the VC firm is already in talks to sell part of its stake in Impresario, an entertainment and hospitality chain that operates Smoke House Deli and Prithvi Cafe.

The names of the assets involved have not been confirmed by the PE firm.

Fund 3’s most recent investments include SUGAR Cosmetics and Reliance Jio in India. The proceeds will be pumped back into new investments to further enhance L Catterton Asia Fund 3’s overall returns.

Founded in 1989, L Catterton has $33 Bn of assets under management globally and has made 250+ investments in consumer brands across the world. It has a strategic partnership with LVMH and backs companies in categories such as beauty and personal care, consumer services, health and wellness, pet care, as well as speciality food and beverage, among others.

Its Asia funds’ previous investments include PVR, Fab India and Genesis Colours, among others. Asia Fund 3 closed in 2019 with $1.45 Bn of committed capital, and its portfolio reportedly comprises 15 to 20 companies in consumer categories across Asia such as pan-Asian startup Zenyum, Indonesian startup Sociolla, Chinese startups Genki Forest, Heytea and Nebula Brands and Japanese eyewear chain OWNDAYS.

Update | June 28, 07:30 PM

Story updated to reflect the news correctly.