L Catterton Asia backs Korean eyewear brand
L Catterton Asia has led a consortium including Groupe Arnault - the family office of LVMH founder Bernard Arnault, which is one of the firm's LPs - to purchase a stake in Gentle Monster, a South Korean sunglasses and eyewear brand.
Financial terms weren’t disclosed but local media reported that the deal was worth about KRW60 billion ($53 million). L Catterton Asia had become the second-largest shareholder in the owner and operator of Gentle Monster.
Founded in 2011 by Jay Oh and Hankook Kim, Gentle Monster gained popularity in South Korea and China after Korean actress Jun Ji-hyun wore its sunglasses in the TV drama “My Love from the star." Gentle Monster is sold through 31 directly-owned stores – including six flagship stores, 19 outlets within department stores and six free duty-free stores – and 130 specialist optical outlets in South Korea.
The company has also expanded into 19 overseas markets, operating six flagship stores under different design themes in New York, Beijing, Shanghai, Chengdu and Hong Kong. It plans to enter Europe and the Middle East, offering unique products and flagship store experiences to international consumers, a statement said.
“With its strong brand identity and creative designs, Gentle Monster is an emerging company that is redefining the sunglasses-design space with the potential to become a truly iconic brand,” said Ravi Thakran, chairman and managing partner of L Catteton Asia. The GP will work alongside the management team to support the growth, offering insights on brand building, marketing, retail operations and global expansion.
It is the GP’s third investment in South Korea following the acquisition of minority stakes in Clio Cosmetics and YG Entertainment. Driven by the popularity of music, TV dramas and beauty products, private equity investors see huge potential in taking Korean consumer brands overseas.
L Catterton Asia was formed in early 2016 following a merger between L Capital and US-based consumer-focused GP Catterton. The GP is currently looking to raise $1.25 billion for its third fund.
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