L Catterton Fund IX to target $4 bln


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L Catterton, a consumer-focused private equity firm, is seeking $4 billion for its latest flagship, a source said.

At $4 billion, Fund IX will be the largest raised by L Catterton to date. Demand for the pool is expected to be high, the source said. See L Catterton’s SEC filing here.

L Catterton closed its last flagship, Fund VIII, on $2.75 billion in 2016. Catterton Partners VII LP collected $1.68 billion in 2013.

Fund VII was producing a net internal rate of return of 17 percent and a 1.7x multiple as of Mar. 31, the source said. Fund VII returned $1.7 billion to investors, the person said.

Catterton Partners VI-B LP, a top-off fund, raised $200 million in 2009, PitchBook said. Fund VI-B is producing a net IRR of 21 percent and 2.3x multiple, the source said.

Founded in 1989, Catterton has long been known for its focus on consumer investments. This includes retail and restaurants, food and beverage, consumer products as well as consumer services. In 2016, LVMH Group combined its private equity and real estate arms with Catterton to form L Catterton, Buyouts reported.

L Catterton this week invested $100 million in Boll & Branch, a maker and retailer of sustainable home goods. In June, the PE firm agreed to buy Del Frisco’s Restaurant Group, a restaurant operator, for about $650 million. L Catterton sold Punch Bowl Social to Cracker Barrel Old Country Store in July.

Executives for Catterton declined comment.