Catterton gears up for big fundraising push this year

  • Catterton talks to LPs about next growth offering
  • Growth team targets control investments in companies under $100 mln enterprise value
  • Firm also expected to launch next flagship fund this year

The firm has been pre-marketing its third growth fund, which several LPs said could target $450 million.

The third growth fund has not yet launched, though the LPs expect it to hit the market soon. Andi Rose, a spokeswoman for Catterton, declined to comment.

Catterton’s growth funds target control investments in companies with enterprise values under $100 million, according to a statement from the firm. The growth group mostly targets the North American consumer sector, according to a past investment report from the Pennsylvania Public School Employees’ Retirement System, an LP in the second growth fund.

Catterton, principally owned by Managing Partners Michael Chu and Scott Dahnke, in 2013 closed Growth Fund II on $400 million, after increasing its hard cap from $350 million. The firm closed Growth Fund II alongside its flagship Fund VII, which raised $1.6 billion.

Growth Fund II was generating a 7.61 percent internal rate of return and a 1.04x multiple as of June 30, 2014, according to alternative assets data provider Bison.

The firm’s debut growth fund closed on $316 million in 2008. That fund was producing a 14.8 percent IRR and a 1.62x multiple as of June 30, 2014, according to Bison.

Recent investments from Catterton’s growth business include women’s activewear brand Sweaty BettyPiada Italian Street Food, digital products company 360fly, and pain management company Pain Doctor

Catterton is expected to bring its next flagship offering to market this year as well, two LPs said. It’s not clear how much Catterton Partners VIII will target.

Catterton managed about $4.1 billion as of December 31.