L Catterton India Fund Achieves $200 Million First Close

L Catterton’s India-focused consumer fund has secured its first close at $200 million, which is approximately Rs 1,760 crore. This investment initiative, known as the L Catterton India Fund (Fund I or the Fund), was initiated by L Catterton Asia along with Sanjiv Mehta, a former executive at Hindustan Unilever Ltd, last year, aiming to invest in mid-market consumer enterprises within India.

Investment Goals and Commitments

As reported by ET, the private equity fund has set a target of raising $400 million, complemented by an additional greenshoe option of $200 million. The fund has gathered commitments from the World Bank’s International Finance Corporation (IFC) and a number of clients from Kotak Private, which is the private banking and wealth management branch of Kotak Mahindra Bank. The fund is anticipating investments in food and beverage sectors, healthcare consumer services brands, and retail segments, among other areas.

Investment Strategy

L Catterton’s strategy includes investing in 7 to 9 companies, with the typical investment amount ranging from $25 million to $150 million. So far, it has made one investment in Farmley, a direct-to-consumer healthy snacking brand. Sanjiv Mehta serves as the executive chairman of L Catterton India, while Anjana Sasidharan and Vikram Kumaraswamy lead the operations of the India division.

Firm Overview and Portfolio

L Catterton, known for its consumer-focused investments, has assets under management (AUM) totaling $37 billion. The firm’s commitment to this fund will be limited to 19.9%. Since its establishment in 1989, L Catterton claims to have made over 275 investments, with notable mentions in its India portfolio including PVR, Drools, Sugar Cosmetics, FabIndia, and Jio Platforms.

Recent Developments in the VC Sector

In a related incident, last month, Atomic Capital, a venture capital firm concentrating on early and growth-stage funding, declared the final close of its first fund at 400 crore, with plans to support startups in the consumer tech and consumer-enabler spaces.