CDIB invests in South Korean skincare company
CDIB Capital, the private equity arm of Taiwan’s China Development Financial, has invested an undisclosed sum in L&P Cosmetic, a skincare company based in South Korea.
Founded in 2009, L&P produces high-end facial masks under the Mediheal brand. These products are popular in China as well as South Korea, with annual revenue growth reaching 20%.
CDIB estimates that the global facial and skincare cosmetic market is worth $120 billion. L&P's growth is expected to be driven by the availability of higher quality facial sheet materials and increasing usage frequency. The GP will also support expansion into Southeast Asia, Japan, the Middle East, Europe and the US.
“We have followed L&P for several years, tracking in particular its rapid expansion in Korea and China, and have been impressed by the strength of the brand and the growth achieved by the management,” H.Y. Kim, a managing director at CDIB Capital, said in a statement.
Korea's beauty industry has become a popular target for private equity to invest, given the potential to leverage demand for high quality products overseas. Bain Capital Private Equity recently acquired a controlling stake in botox manufacturer Hugel, having bought Carver Korea last year in conjunction with Goldman Sachs. In addition, L Capital Asia - now known as L Catterton - invested in color cosmetics manufacturer Clio Cosmetics.
CDIB Capital was set up in 2006 using balance sheet money. The firm closed its debut Asia private equity fund - with commitments from fund-of-funds, family offices, sovereign wealth funds, insurers and corporations – in 2015 at $405 million. It also manages two renminbi VC funds, a biotech fund and a lifestyle fund in Taiwan, as well as an innovation fund with mandate from Alibaba Group.
In private equity, the GP is focused on consumption, advanced manufacturing and new services. It pursues China growth by investing in and around China, targeting companies that are proxies to the country, Lionel de Saint-Exupery, president and CEO of CDIB Capital, told AVCJ in an interview.
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