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LVMH-backed L Catterton aims to raise 2 billion yuan in first yuan-denominated fund

Published 10/31/2022, 02:24 AM
Updated 10/31/2022, 03:05 AM
© Reuters
USD/CNY
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BEIJING/HONG KONG (Reuters) -L Catterton, the private equity firm backed by luxury goods empire Louis Vuitton Moet Hennessy, said on Monday it aimed to raise 2 billion yuan ($275.44 million) for its first yuan-denominated fund, as it eyes early-stage investments in China.

L Catterton, which has invested in Chinese soft drink brand Genki Forest and premium pet food provider Shanghai Enova Pet Products, said the new fund has received capital from unidentified local Chinese government body and international and overseas companies in the consumer sector.

The yuan-denominated fund, for which the first-close has completed, will focus on investing in early-stage firms in the consumer sector for its first phase, according to a Chinese statement published by L Catterton in the social media platform WeChat.

The new fund has raised "around 1 billion yuan" at first-close, a source familiar with the matter said.

Private equity funds typically begin investing after their first-close, when they have received an initial round of commitments from investors.

L Catterton declined to comment on a Reuters request.

© Reuters. FILE PHOTO: A China yuan note is seen in this illustration photo May 31, 2017.     REUTERS/Thomas White/Illustration

The first phase of the fund will be based in the southwestern Chinese city of Chengdu, according to the statement.

($1 = 7.2611 Chinese yuan renminbi)

 

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