LVMH-backed L Catterton seeks Sebi approval for Rs 4,000 crore India fund

US-based private equity firm L Catterton is likely to invest in India alongside its next Pan Asia dollar fund on a pro-rata basis

Backed by French luxury fashion house Louis Vuitton Moët Hennessy (LVMH), private equity firm L Catterton has applied with Sebi to launch an Indian rupee fund, according to an Economic Times report quoting sources.

The US-based private equity firm aims to raise Rs 4,000 crore in the next year under the Category II AIF guidelines, the report added. If Sebi approves L Catterton’s application, this will be the first instance of a global private equity fund launching an Indian investment vehicle, the news report mentions.

Tapping investors such as banks, insurance companies, pension funds, family offices, and high-networth individuals, L Catterton is likely to invest in India alongside its next Pan Asia dollar fund on a pro-rata basis. It is also likely that the rupee fund will consider both majority and minority investments. However, L Catterton has not issued a statement on related media reports so far.

 

L Catterton India Fund: Key details

The equity firm’s investment vehicle will most likely be managed by the firm’s executive chairman of India, Sanjiv Mehta, as well as partner and head of India, Anjana Sasidharan (formerly from Sequoia). The rest of the current L Catterton Asia leadership team, led by managing partner Scott Chen (formerly from TPG), which has been in place since 2019, will also oversee the fund. Notably, L Catterton manages around $35 billion of equity capital.

L Catterton’s ‘Indian’ dream

Earlier, in March this year, L Catterton launched a new India consumer-focused joint venture partnership with Sanjiv Mehta, who was serving as the Hindustan Unilever South Asia president at the time. Mehta, who was also the chairman, chief executive officer, and managing director of Hindustan Unilever, oversaw market-leading products and services which were consumed by over 90 per cent of Indian households.

Currently, L Catterton has deployed over $1 billion (including co-investments) across 19 companies, including three in India. These investments have already realised a 3.1 times gross return and 1.8 times unrealised gross return. Therefore, India is one of the three key markets for the fund in Asia. L Catterton’s current portfolio includes investments in Jio Platforms, Drools, and Sugar Cosmetics.

It is worth mentioning that global private equity funds usually invest in India from their global pool of capital or Asia funds. For instance, the US fund Blackstone has invested in India from its $11 billion second Asia private equity fund, which was raised in 2021.