THE WHAT? LVMH-backed private equity firm L Catterton plans to invest around ¥50 billion (US$313 million) in Japanese consumer businesses over the next three years.
THE DETAILS The firm aims to complete around five investments across sectors including cosmetics, food, pet care and restaurants, according to Japan head Toshitaka Shimizu. L Catterton has approximately ¥50 billion in deal capacity through a mix of equity and debt financing.
The firm focuses primarily on family-owned businesses facing succession challenges as well as emerging companies seeking support for expansion. Since opening its Japan office in 2017, L Catterton has invested in nine companies, with its portfolio including brands such as denim label Kapital and restaurant operator HUGE, known for its premium wine bars and Kobe beef restaurants.
Japan’s private equity market has been particularly active, with deal value rising 81% to US$33.4 billion last year, despite a broader slowdown in dealmaking across Asia.
THE WHY? L Catterton is targeting Japan because of strong private equity activity and opportunities to scale consumer brands using its sector expertise and global network.
Source: Bloomberg
