LMVH to combine private equity division with Catterton


L Capital, the private-equity investment division of LMVH, is set to merge with Catterton, its U.S. counterpart. The combined company, to be called L Catterton, will control $12 billion in assets, making it the world’s largest investment firm with a consumer focus.

L Catterton’s partners will own 60 per cent of the new firm, while LMVH and Groupe Arnault, the family holding company of LVMH chairman and chief executive officer Bernard Arnault, will jointly own the rest. The price and structure of the transaction have not yet been disclosed.

“L Catterton will provide investors with a unique value creation platform, bringing together our global network and industry expertise,” says Arnault. “Having been investors in Catterton’s funds since 1998, we have participated in its growth and success, evidenced by its strong track record and its distinctive culture.”

The current managing partners at Catterton, J. Michael Chu and Schott A. Dahnke, will become the global co-chief executives at the new firm. L Catterton will be headquartered in Greenwich, Connecticut and London, England.

“The globalization of media and technology, combined with increasingly permeable geographic borders, is driving rapid consumer growth on an unprecedented global scale,” says Dahnke. “Together, Catterton and L Capital will create a global consumer investing franchise with unmatched access to resources in the industry.” CJ