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Largest Consumer-Focused investment Firm Formed by LVMH, Groupe Arnault and Catterton

Jan 07, 2016

Three heavyweight names, covering the luxury and investment fields have come together to form what is being called “the largest global consumer-focused investment firm”.

On January 5th, LVMH announced: “Catterton, the leading consumer-focused private equity firm, LVMH, the world leader in high-quality products, and Groupe Arnault, the family holding company of Bernard Arnault, announced today that they have entered into an agreement to create L Catterton.” (Bernard Arnault is the chairman and CEO of LVMH, and the Arnault family group is the largest shareholder of that company.)  

According to the terms of the agreement, L Catterton will be 60% owned by the partners of Catterton and 40% jointly owned by LVMH and Groupe Arnault.

“The new partnership will combine Catterton’s existing North American and Latin American private equity operations with LVMH and Groupe Arnault’s existing European and Asian private equity and real estate operations, currently conducted under the L Capital and L Real Estate franchises,” LVMH announced.

“L Catterton expects to grow its assets under management to more than $ 12 billion after various successor funds are closed,” LVMH added. “With a 27-year history and more than 120 investment and operating professionals in 17 offices across five continents, L Catterton will be poised to leverage its unique global network and expertise to partner with consumer businesses in all major consumer markets.”

Headquartered in Greenwich, CT and London, L Catterton will have regional offices across Europe, Asia and Latin America.  J. Michael Chu and Scott A. Dahnke, currently Managing Partners at Catterton will be the Global Co-CEOs of L Catterton. 

“We are delighted to partner with Catterton and its team,” said Arnault, Chairman and CEO of LVMH and Groupe Arnault. “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.”

Chu commented:  “We are excited to announce this transformative combination and partnership with LVMH and Groupe Arnault. The breadth of our collective expertise will be second to none in the consumer industry, and we look forward to benefitting from the strength and global reach of the team at L Capital and L Real Estate as we continue to seek out investment opportunities with significant growth potential.”

“The globalisation of media and technology, combined with increasingly permeable geographic borders, is driving rapid consumer growth on an unprecedented global scale,” said   Dahnke. “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.”

The transaction, which is subject to certain regulatory procedures, is expected to close early in 2016, after these have been completed.

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