L Catterton, backed by LVMH, to raise $600 million for debut India fund; IFC proposes $30 million

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L Catterton, a private equity firm backed by LVMH, the luxury goods conglomerate behind brands such as Louis Vuitton and Dior, is raising $600 million for its debut India-focused fund, a disclosure by the International Finance Corporation (IFC), the World Bank Group’s private sector investment arm, said.

This could be the first time a global private equity firm is launching an investment vehicle dedicated exclusively to India.

IFC has proposed an equity investment of up to $30 million in the fund — capped at 19.9 percent of total commitments — and an additional $30 million under a delegated co-investment envelope to participate in select portfolio companies.

To be named L Catterton India Fund I, it will focus on providing growth capital to mid-market consumer companies across sectors such as food and beverage, retail, healthcare services, restaurants, and consumer brands. It is expected to back seven to nine companies, with cheque sizes ranging from $25 million to $150 million.

The fund will be managed by Sanjiv Mehta, former chairman and CEO at Hindustan Unilever Limited (HUL), as part of a joint venture between L Catterton and Mehta, who was the president of Unilever South Asia.

He is likely to be joined by Anjana Sasidharan (formerly with Sequoia Capital), who has led L Catterton’s India investments since 2021. The fund will also be overseen by the firm’s Asia leadership team, led by managing partner Scott Chen (ex-TPG), in place since 2019.

L Catterton manages around $35 billion of equity capital globally.

“The Fund is expected to increase access to private equity capital and value creation for mid-market companies in India, including those that are women-owned or women-led,” IFC said in its investment note. L Catterton will apply its global value-creation playbook — built through operating partnerships and deep sectoral expertise — to help Indian companies scale operations and accelerate growth, it noted.

L Catterton has deployed over $1 billion (including co-investments) across 19 companies, including five in India — Jio Platforms, Drools, Fabindia, Sugar Cosmetics and most recently Farmley.

Globally, the PE firm has backed several well-known consumer brands, including Cholula Hot Sauce, Ferrara Candy Company, Kettle Foods, Kodiak, Little Moons, Goodles, Planted, NotCo, and Plum Organics.

The success of L Catterton’s first India fund would not only attract new international LPs to the mid-market consumer segment but also encourage other global fund managers to raise dedicated India vehicles, IFC said.