L Capital Management, the buyout fund formed by luxury goods conglomerate LVMH Group, has closed its new fund, L Capital 3 FCPR, with 400 million euros ($527 million). The Paris-based private equity firm said its original fundraising target was 350 million euros. L Capital 3 will invest in mid-market European lifestyle brands and selective retail companies, the firm said.
L Capital Management today announced the final closing of L Capital 3 FCPR with total commitments of EUR400 million, well in excess of the Fund’s original target of EUR350 million. L Capital Management – an independently-operated private equity firm started in 2001 and sponsored by the LVMH Group and its private holding company Groupe Arnault, – is Europe’s most established private equity firm specializing on lifestyle brands and selective retail businesses in Europe.
L Capital 3 will invest in mid-market European lifestyle brands and selective retail benefiting from global consumption trends. In particular, it will seek to invest primarily into lifestyle brands which have the characteristics of being Aspirational, Affordable and Alternative. “Changing demographics, consumer behavior and emerging new market segments in mature economies in Europe and the US, an increasing wealthy middle-class and emergence of important, powerful economies in China, India, South-East Asia and South America create significant demand for lifestyle brands,” says Philippe Franchet, Senior Partner at L Capital Management.
“Working in partnership with management teams and drawing upon the worldwide resources and expertise of the LVMH Group and L Capital Asia – a sister fund focused on Asia, with offices in Singapore, Mumbai and Shanghai – L Capital Management’s goal is to develop world-class brands and retail businesses benefiting from growing global consumption trends,” says Daniel Piette, Chairman at L Capital Management.
The Fund will acquire majority or minority equity interests, either alone or jointly with select co-investors, in mid-market companies with enterprise values of up to EUR400 million. It intends to invest in a portfolio of 10-15 companies. The Fund builds on a very compelling market opportunity in lifestyle brands and selective retail, and the track record of L Capital Management’s prior funds.
Capstone Partners acted as placement agent for the Fund, marketing in North America, Europe, Middle East and Asia. Despite the challenges presented by depressed capital markets and a negative sentiment on the European economy, Capstone completed the fundraise with investor interest well in excess of the Fund’s target, attracting world-class investors from across the world.
SJ Berwin advised L Capital Management on the legal and tax structuring of the Fund (legal:Arnaud David)(legal:Partner)(legal:assisted by Agnes Rossi)(legal:Marcela Moraru and Pierre-Charles Kaladji)(associates — tax:Sylvie Vansteenkiste and Raphael Bera)(associates — tax:Partners).
About L Capital Management
With offices in Paris, Milan and Madrid, and a team of 15 professionals, L Capital Management ( www.lcapital.eu ) is Europe’s most established private equity firm specializing on lifestyle brands and selective retail businesses in Europe. L Capital has invested in Micromania, Gant, Forte Pharma, Nutrition & Sante, Sandro, Maje & Claudie Pierlot, Vitamin Water, Pepe Jeans & Hackett Group, Princess Yachts, Calligaris, Stroili Oro, Dondup, etc.
About Capstone Partners
Founded in 2001, Capstone Partners ( www.csplp.com ) is a leading independent placement agent focused on raising capital for private equity firms. Its experienced team of 25 professionals, working from offices in North America, Europe and Asia, is well placed to assist investment firms in the international development of their investor base and complete successful fund raisings in a timely and efficient basis across different cycles.