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L Catterton bags $641m for fourth consumer growth fund

L Catterton will stay on the fundraising trail to give limited partners time to complete allocations, a source told Buyouts. The offering is expected to close in early 2021.

L Catterton has already exceeded the target of its fourth consumer-focused growth equity offering.

L Catterton Growth IV has secured $641 million, according to an SEC filing, putting it well ahead of its target, which Buyouts previously reported as $625 million.

The Greenwich, Connecticut, private equity firm will stay on the fundraising trail to give limited partners time to complete allocations, with a final close expected in early 2021, said a person with knowledge of the matter.

Fund IV is already the largest vehicle raised under L Catterton’s North American growth strategy. It is 4 percent larger than Fund III, which closed on $615 million in 2016. Fund III has performed well, generating a 27.87 percent net IRR as of December 2019, according to a report by Pennsylvania Public School Employees’ Retirement System.

To date, 51 investors have committed capital to Fund IV, the Form D said. Disclosed LPs include Alaska Permanent Fund, which is investing $50 million, and Missouri Local Government Employees’ Retirement System, which is investing $75 million. Park Hill Group is the placement agent.

L Catterton formed the strategy to acquire control or minority interests in US and Canadian mid-market consumer businesses with strong growth prospects. It generally makes investments of $10 million to $50 million in sectors like beauty and wellness, consumer products and services, fashion and accessories, food and beverage, media and marketing services, and retail and restaurants.

The strategy’s portfolio presently holds 32 companies, according to L Catterton’s website. Recent additions include 98point6, an on-demand digital primary care service backed this year in a $118 million financing led by L Catterton and Activant Capital.

L Catterton also this year made a minority investment in Public Goods, a direct-to-consumer retailer of grocery, household and personal care products. The terms were not disclosed.

North American growth is one of seven dedicated consumer-focused platforms managed by L Catterton. The firm’s flagship buyout strategy is poised to close its largest offering to date, after collecting more than $3.7 billion toward Fund IX’s $4 billion target, Buyouts reported in September.

All platforms are overseen by co-CEOs Michael Chu and Scott Dahnke, who were part of the 2016 deal that merged the original Catterton with investment arms of luxury goods conglomerate LVMH, creating L Catterton. Senior members of the North American growth team include managing partners Michael Farello, Karen Gordon and Jonathan Owsley.

L Catterton declined to provide a comment on this story.

Action Item: See L Catterton’s ADV filings here.