L Catterton backs Japan cosmetics brand Etvos

It is L Catterton Asia's first investment since regional head Ravi Thakran announced plans last year to spin out and raise an independent fund. L Catterton subsequently said that tensions within team had been resolved and the latest Asia fund closed with $1.4 billion in commitments, lower than the expected $1.55 billion.

Founded 2007, Etvos is considered a pioneer of Japan's mineral-based makeup market. Products encompass a range of skincare, makeup, and hair products positioned as gentle on the skin and not containing fragrances or other irritants. This includes makeup that does not require post-application cleansing and skincare products based on natural moisturizing compounds called ceramides. 

"As consumers' preferences continue to shift from conventional cosmetics to natural ingredients, we see a significant opportunity for Etvos to achieve sustainable long-term growth in the natural cosmetics market," Taka Shimizu, a managing director at L Catterton Asia, said in a statement. "Despite heightened uncertainty facing markets globally, we remain confident that the company, which has already established a unique positioning in the cosmetics market with a strong focus on product excellence, is poised for continued growth and expansion."

L Catterton, which has a strategic relationship with luxury goods giant LVMH, plans to help Etvos build out the product portfolio, enhance customer experience, and expand its retail footprint in Japan and overseas, with an emphasis on Asia. Etvos markets across six own-branded stores with in-store beauty advisors in four major Japanese cities, as well as through 435 multi-branded stores and online channels. 

Following completion of the investment, Norbert Leuret, president of LVMH Japan, and Masatoshi Kuroda, previously a special advisor to Chanel, will join the board.

This is L Catterton's second investment in Japan after Fund III acquired a controlling stake alongside Mitsui & Co Principal Investments in eyewear retailer Owndays in 2018. L Catterton said at the time that it had three other Japan deals in its pipeline. The idea is to target Japanese brands with strong domestic followings that need help expanding internationally. This is seen as an area where local successes have traditionally struggled versus competitors in western markets.

US-based L Catterton claims to be the largest and most experienced consumer-focused PE firm globally, with some $20 billion in assets under management across six platforms. It was formed in 2016 through the merger of Catterton's North American and Latin American businesses with L Capital's private equity and real estate operations in Europe and Asia.

Previous activity in Asia cosmetics includes investments in Korea's Clio Cosmetics in 2016 and Taiwan's Dr Wu Skincare in 2014.

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• Topics
• North Asia
• Consumer
• Expansion
• Japan
• L Catterton