ETtechL Catterton, leading consumer-based private equity firm backed by global luxury conglomerate LVMH, is raising a $600 million fund focused solely on India, marking its first investment vehicle dedicated to the country.
International Finance Corporation (IFC), the World Bank Group’s private sector investment arm, said it will invest $30 million in the fund and has set aside another $30 million for potential co-investments.
In March 2024, L Catterton created a joint venture with Sanjiv Mehta, former CEO of Hindustan Unilever (HUL), to sponsor the fund. The venture will contribute 5% of the fund’s total corpus — split between Mehta and the PE firm.
The India vehicle will be led by Mehta, who now serves as executive chairman of L Catterton India, and Anjana Sasidharan, partner and head of India investments at L Catterton.
Mehta led HUL for a decade until 2023 while Sasidharan joined L Catterton in 2021 after a nine-year stint in the investment team of Sequoia Capital India.
As ET had reported in July 2024, L Catterton applied to register this India-focused vehicle as a Category II AIF (alternative investment fund) with capital markets regulator Sebi.
Consumer focus, larger cheques
L Catterton India Fund-I will look to make seven to nine investments, with cheque sizes ranging from $25 million to $150 million, IFC said. The fund will back companies in food and beverages, healthcare, restaurants, retail, and consumer brands.
This mirrors L Catterton’s global strategy of investing in brand-led consumer businesses, but with a dedicated India lens for the first time.
The development was first reported by news website The Arc.
India bets
L Catterton has previously invested in India through its Asia fund. Its portfolio includes Sugar Cosmetics, Farmley, where it led a $40-million round last month, and Drools, a petcare firm that recently became a unicorn after Nestlé’s minority investment. It has also backed the likes of Impresario, which operates the Social chain of restaurants, and Jio Platforms, the digital business of Reliance Industries.
The fund has increasingly focused on India’s fast-growing consumer base and rising demand for branded, health-conscious, and digitally-native products.
With this fund, L Catterton joins a crowded consumer-focused investment segment with competition coming from the likes of A91 Partners, DSG Consumer Partners, and Fireside Ventures.
Several India-focused funds have announced closures in recent months, reflecting investor confidence in the local consumption story. These include, A91 Partners, which raised $665 million in its largest-ever fund.
ET reported on April 25 that Peak XV Partners (formerly Sequoia Capital India) is currently raising $1.2-1.4 billion for its first independent fund post-split.
International Finance Corporation (IFC), the World Bank Group’s private sector investment arm, said it will invest $30 million in the fund and has set aside another $30 million for potential co-investments.
In March 2024, L Catterton created a joint venture with Sanjiv Mehta, former CEO of Hindustan Unilever (HUL), to sponsor the fund. The venture will contribute 5% of the fund’s total corpus — split between Mehta and the PE firm.
The India vehicle will be led by Mehta, who now serves as executive chairman of L Catterton India, and Anjana Sasidharan, partner and head of India investments at L Catterton.
Mehta led HUL for a decade until 2023 while Sasidharan joined L Catterton in 2021 after a nine-year stint in the investment team of Sequoia Capital India.
As ET had reported in July 2024, L Catterton applied to register this India-focused vehicle as a Category II AIF (alternative investment fund) with capital markets regulator Sebi.
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Consumer focus, larger cheques
L Catterton India Fund-I will look to make seven to nine investments, with cheque sizes ranging from $25 million to $150 million, IFC said. The fund will back companies in food and beverages, healthcare, restaurants, retail, and consumer brands.
This mirrors L Catterton’s global strategy of investing in brand-led consumer businesses, but with a dedicated India lens for the first time.
The development was first reported by news website The Arc.
India bets
L Catterton has previously invested in India through its Asia fund. Its portfolio includes Sugar Cosmetics, Farmley, where it led a $40-million round last month, and Drools, a petcare firm that recently became a unicorn after Nestlé’s minority investment. It has also backed the likes of Impresario, which operates the Social chain of restaurants, and Jio Platforms, the digital business of Reliance Industries.
The fund has increasingly focused on India’s fast-growing consumer base and rising demand for branded, health-conscious, and digitally-native products.
With this fund, L Catterton joins a crowded consumer-focused investment segment with competition coming from the likes of A91 Partners, DSG Consumer Partners, and Fireside Ventures.
Several India-focused funds have announced closures in recent months, reflecting investor confidence in the local consumption story. These include, A91 Partners, which raised $665 million in its largest-ever fund.
ET reported on April 25 that Peak XV Partners (formerly Sequoia Capital India) is currently raising $1.2-1.4 billion for its first independent fund post-split.
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