LVMH-backed L Catterton forms JV with former HUL chief Sanjiv Mehta for a new investment vehicle

Consumer-focused private equity fund L Catterton, backed by French luxury brand LVMH, on Thursday said its Asia platform (LCA) will form a joint venture partnership with former Hindustan Unilever Ltd. (HUL) chief executive officer Sanjiv Mehta to develop a new investment vehicle.

“With India now having the world’s largest population and generating high GDP growth, there has never been a better time to deepen our commitment to the market and invest in the consumer businesses that will shape the landscape of tomorrow,” said L Catterton Global co-CEO Michael Chu.

The venture is a vehicle that will seek predominantly India-based investors and will be deployed in a coordinated manner with L Catterton’s pan Asia fund, a person familiar with the matter told Mint.

In line with the firm’s ability to provide flexible capital, the JV may acquire a mix of minority and majority stakes in a range of enterprises spanning startups raising Series B funds to more established companies, with deal sizes typically spanning $25 million to $150 million, this person said.

Mehta, who will serve as its executive chairman of India, effective 4 April 2024, will be involved with LCA and the firm’s other global fund platforms more broadly, the company said in a statement.

“Sanjiv’s experience at Hindustan Unilever…is extremely relevant and valuable. His partnership will deepen our in-market network, insights, and capabilities and we look forward to further growing our franchise in India and throughout Asia,” said L Catterton Asia Partner and Head of India Anjana Sasidharan.

With decades of experience in the consumer space, Mehta’s most recent stint was president of Unilever South Asia as well as chairman/CEO and managing director of HUL, where he worked for 30 years.

Under his supervision, the company saw a fivefold increase in the market cap to ₹6.2 trillion, making it India’s fifth largest public company and the country’s largest fast-moving consumer goods company. He has also held senior leadership positions in Unilever spanning different geographies including Asia, Middle East and Africa.

“With L Catterton’s global reach, investing expertise in the consumer sector, and familiarity with the region, all augmented by its strategic partnership with LVMH and the Arnault family office, the firm is very well positioned to succeed,” Mehta said in the statement.

L Catterton, which aims to deepen its presence in India, manages about $35 billion of equity capital across three multi-product platforms: private equity, credit and real estate. Founded in 1989, the firm has made over 275 investments in some of the world’s most iconic consumer brands. Some of L Catterton’s investments in India include Reliance Jio Infocomm, Sugar Cosmetics and Drools Pet Food.