L Catterton Asia secures a legally binding contract for a $360 million Continuation Fund
- ByStartupStory | June 27, 2022
According to a press release from the company, private equity firm L Catterton has inked a legally binding agreement for a $360 million continuation fund in Asia. The Nasdaq-listed PE company Hamilton Lane will serve as the fund’s anchor, while New Capital Partners will serve as its backer. It will buy a structured minority stake in some private assets owned by the third Asia-focused fund of the company.
The deal positions the fund’s limited partners to profit from possible gains alongside the New Capital Partners while providing them with immediate cash flow. L Catterton’s Asia division would reinvest the transaction’s profits in new assets to raise the fund’s total return, the company said.
Chinta Bhagat, managing partner of L Catterton Asia said, “Despite the COVID-19 pandemic’s effects, we have been able to improve the Fund’s performance over the past two years thanks to our research-led investing methodology, worldwide expertise, operational capabilities, and network of strategic partnerships. With the expansion of numerous categories supported by strong demand fundamentals, Asia’s consumer industry continues to have strong long-term growth prospects, and we are well-positioned to take advantage of new investment opportunities.”
L Catterton received advice on the deal from UBS Investment Bank. L Catterton has about $33 billion in equity capital across fund strategies, 17 offices worldwide, and is backed by the Paris-based luxury goods conglomerate LVMH Mot Hennessy Louis Vuitton. Over 250 investments in top consumer brands have been made by the company since 1989.
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