Catterton Partners said Wednesday that it has raised $2.1 billion in total for two funds, Catterton Partners VII and Catterton Growth Partners II. According to the company, both funds were “substantially over-subscribed.” Based in Greenwich, Conn., Catterton Partners is a private equity firm that focuses on consumer segments.
Greenwich, CT – September 18, 2013 – Catterton Partners, the leading consumer-focused private equity firm, today announced that it has closed its seventh buyout fund, Catterton Partners VII, L.P., as well as its second growth fund, Catterton Growth Partners II, L.P. With the closing of these two funds, which include a combined $2.1 billion of Limited and General Partner commitments, Catterton now has over $4.0 billion under active management focused on growing well-positioned consumer companies.
Both funds were significantly over-subscribed. To help accommodate the investor demand, Catterton Partners VII increased its hard cap from $1.5 billion to $1.6 billion. Catterton Growth Partners II, which was raised in just three months, also increased its hard cap, from $350 million to $400 million. Both funds received continued strong support from existing investors and also attracted new investors. The broad LP base consists of leading global public pension funds, sovereign wealth funds, insurance companies, endowments, foundations, and family offices.
Consistent with Catterton’s proven investment strategy, both funds will target control-oriented investments in high growth consumer companies in attractive categories. Catterton Partners VII will target companies with enterprise values typically from $100 million to more than $1 billion. Similar to the first Growth fund, Catterton Growth Partners II will target companies with enterprise values that are generally less than $100 million.
“We are pleased to have closed two new funds at levels that exceeded our expectations,” said J. Michael Chu, Co-Managing Partner of Catterton Partners. “Over the last 24 years, Catterton has built a leading franchise in consumer investing. The great success we have enjoyed since our inception would not be possible without the support of our limited partners and the outstanding work of the management teams with whom we partner. Our ability to close these funds in a short period of time is a testament to our strategy and solidifies our leadership in consumer-focused investing. We look forward to continuing to leverage our expertise to help high-growth consumer companies realize their full potential.”
“We were honored to earn the overwhelming support of investors in these two funds, which surpassed our targets,” said Scott A. Dahnke, Co-Managing Partner of Catterton Partners. “Catterton is well known for building market-leading consumer growth companies, powered by strong brands with deep consumer appeal. We will continue to pursue the strategy our firm has followed since our inception: partnering with management teams of well-positioned consumer companies to build outstanding brands. We look forward to continued success and to delivering strong returns in Fund VII and Growth Fund II.”
Fund VII has already completed three investments in Primanti Brothers, PIRCH and CorePower Yoga. Growth Partners II has already completed its first investment in Snap Kitchen.
The final close of these two funds follows a very active 18 months in which Catterton exited 11 portfolio companies and completed 12 new investments. Recent exited investments include Plum Organics, MonoSol, Heartland RV, and O.N.E Coconut Water. In addition, three of Catterton’s portfolio companies completed successful IPOs, including Restoration Hardware, Bloomin’ Brands Inc., and Noodles & Company. Over the past year, the firm also expanded its deep team of investment and operating professionals and now has 18 investment and operating partners and 42 investment professionals, arguably the largest and most experienced team in the middle market.
Catterton’s previous buyout fund, Catterton Partners VI L.P., closed in June 2006 with $1 billion in commitments. Its previous growth fund, Catterton Growth Partners, L.P., closed in April 2008 with $316 million in commitments.
About Catterton Partners
Catterton Partners is the leading consumer-focused private equity firm with more than $4.0 billion currently under management and a twenty-four year track record of success in building high growth companies. Since its founding in 1989, Catterton has leveraged its category insight, strategic and operating skills, and network of industry contacts to establish one of the strongest private equity investment track records in the middle market. Catterton Partners invests in all major consumer segments, including Food and Beverage, Retail and Restaurants, Consumer Products and Services, Consumer Health, and Media and Marketing Services. Representative Catterton investments include Restoration Hardware, Outback Steakhouse, Sweet Leaf Tea, Noodles & Company, Frederic Fekkai, Build-A-Bear Workshop, Wellness and Nature’s Variety pet food, Kettle Foods, Odwalla, Plum Organics and P.F. Chang’s, to name a few. More information about Catterton Partners can be found athttp://www.cpequity.com.