LVMH and Catterton to merge private equity funds

French luxury group LVMH has partnered with consumer-focused private equity firm Catterton and Groupe Arnault to establish L Catterton, a new private equity firm.

The partnership aims to combine Catterton’s existing North American and Latin American private equity operations with LVMH and Groupe Arnault’s existing European and Asian private equity and real estate operations, currently led under the L Capital and L Real Estate franchises.

The deal is expected to close early 2016 and still subject to regulatory and investor approvals. L Catterton will be 60% owned by the partners of L Catterton and 40% jointly owned by LVMH and Groupe Arnault.

L Catterton will propose six distinct and complementary fund strategies focusing on consumer buyout and growth investments across North America, Europe, Asia and Latin America, in addition to prime commercial real estate globally.

It has set a target of managing over $12bn of assets.

L Catterton will tally more than 120 investment professionals in 17 offices across five continents. Its headquarters will be in Greenwich (Connecticut) and London.

The private equity firm will be led by global co-CEOs Michael Chu and Scott Dahnke, currently managing partners at Catterton.

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