L Catterton raises $615 mln for third growth fund

L Catterton closed its third North American growth fund at an oversubscribed $615 million. L Catterton Growth Partners III LP was targeting $500 million, according to a regulatory filing. The closing comes a month after Catterton joined forces with luxury goods company LVMH Moet Hennessy Louis Vuitton SE and investment firm Groupe Arnault.

The merger, which created the world’s largest consumer-focused investment firm, combined LVMH and Groupe Arnault’s private equity and real estate units with Catterton’s North American and Latin American private equity operations.

Catterton initially planned to raise LCGP III last fall but pushed back the process when merger talks began, according to someone familiar with the fundraising efforts.

Similar to Catterton’s first two growth funds, LCGP III will seek control-oriented investments in North American consumer-focused companies growing at double or triple digit rates and requiring between $10 million and $50 million of capital. As with all prior Catterton funds, LCGP III will be advised by Catterton Management Company LLC.

Catterton Growth Partners II and Catterton Growth Partners closed in September 2013 and April 2008 with $420 million and $316 million in commitments, respectively.

Growth Fund II was generating a 15.8 percent net internal rate of return and a net 1.15x multiple as of March 31, 2015. The firm’s debut growth fund was producing a 13.29 percent net IRR and a net 1.62x multiple as of March 31, 2015, according to alternative assets data provider Bison.

L Catterton expects to grow its assets under management to more than $14 billion after various successor funds are closed, the company said in a statement.

Action Item: L Catterton can be reached at 203-629-4901

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