L Catterton’s fourth consumer growth fund raises bulk of $625 mln target

L Catterton secured nearly $446 million toward a $625 million target for its fourth consumer-focused growth equity fund, according to an SEC filing.

L Catterton Growth Partners IV is poised to wrap up in early 2020, a person with knowledge of the matter told Buyouts.

If this happens, the fund will be the largest raised under L Catterton’s North American growth strategy. Fund III closed in 2016 at $615 million.

Disclosed investors in Fund IV include Alaska Permanent Fund, which committed $50 million, and Missouri Local Government Employees’ Retirement System, which committed $75 million.

L Catterton declined to comment on its fundraising activity.

The fund is expected to maintain the strategy of prior growth vehicles, focusing on control-stake investments in North American mid-market consumer businesses. It will typically invest $10 million to $65 million in opportunities in consumer products, consumer services, food and beverage, and retail and restaurants sectors.

L Catterton’s growth portfolio holds 32 companies, according to the firm’s website, several of them added earlier this year. They include rowing machine maker Hydrow, of Cambridge, Massachusetts, which raised $20 million; Nutrafol, a New York natural hair growth brand, which raised $35 million; and Tonal, a San Francisco-based home fitness training system, which raised $45 million. L Catterton led all three deals.

L Catterton also this year sold its interest in Punch Bowl Social, a Denver, Colorado-based interactive entertainment and restaurant chain. The buyer was Cracker Barrel Old Country Store.

North American growth is one of six fund strategies sponsored by Greenwich, Connecticut-based L Catterton, and one of three with offerings in the market. A June SEC filing showed the firm’s third Asian vehicle has secured almost $1.3 billion, while an August filing heralded the launch of its ninth flagship buyout fund. L Catterton Partners IX is seeking $4 billion.

L Catterton’s growth strategy is overseen by Global Co-CEOs Michael Chu and Scott Dahnke. Other senior team members include Managing Partners Michael Farello, Karen Gordon and Jon Owsley and Partners Chris Roberts and Howard Steyn.

L Catterton Growth Partners III generated a net IRR of 27.7 percent as of June 2018, according to data shared with Preqin by Pennsylvania Public School Employees’ Retirement System.

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