Ravi Thakran plans new Asia venture

"I am really looking forward to building a new platform that focuses on Asia 3.0 – I am almost compelled to call it Asia 3.0 Capital," Thakran (pictured) told a webinar hosted by the Singapore Venture Capital & Private Equity Association (SVCA). "Asia 3.0 is a phase of economic development that will be unprecedented in global history."

AVCJ understands that Thakran has held preliminary discussions with several private equity firms about the possibility of forming an Asia affiliate. These include groups based in the US and Europe that are interested in building out a presence in the region. Any future endeavor may feature some of the executives who comprised the bulwark of the original L Catterton Asia team.

L Catterton 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. L Capital Asia came into being seven years earlier as a private equity platform sponsored by luxury goods conglomerate LVMH. A sister European business was established in 2001.

Thakran led L Capital Asia from the outset and became managing partner and chairman of L Catterton Asia. In 2019, a proposed spin-out involving 12 of L Catterton's 14 Asia-based partners – with Thakran at the head – failed to come to fruition. All the 12 who were part of the spin-out plan have since left the firm. L Catterton, which is currently deploying its third Asia fund, has made several hires in an attempt to bolster the remaining team.

Thakran wants to pursue a similar thesis to the one that defined L Capital Asia – investing in aspirational, affordable and alternative mid-market brands. He remains convinced that growth capital is the best way to access this opportunity in Asia: the entrepreneurs who own leading consumer businesses are seldom willing to give up control; and in his experience, working with founder-led teams where there is a strong alignment of interest delivers the best outcomes.

The Asia 3.0 concept is based on an expectation that the combination of established logistical and technological infrastructure and a growing middle class in emerging markets will create fertile ground for the emergence of more indigenous consumer brands. Segments of interest range from fitness and wellness to pet food and pet services – with growth rates faster than GDP growth the common denominator.

Thakran noted that Asia has the world's leading airline and holiday resort brands. "If you can do it in those categories, why not also in shoes, shirts, denim and eyewear?" he said. "We already see a lot of sparks. Asian entrepreneurs who believe in the quest for quality and in true innovation and creativity – not just going to Western brands, taking pictures through the window and designing things that look similar, but those with their own creative design teams – are going to win."

Success is also dependent on continued innovation in consumer engagement. Restrictions on mobility arising from COVID-19 have reinforced the need for strong digital capabilities. Brick-and-mortar stores will increasingly become devices for brand presentation – supported by digital strategies that deliver an end-to-end customer experience.

"Retail is not dead; retail will never be dead," Thakran added. "Retailers who were already good at education, good at entertainment, good on providing customer experience are thriving. They will continue to build their businesses well. But they all have to dial up digital and dial up their omnichannel strategies in a big way."

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Consumer
• GPs
• Expansion
• Growth capital
• Asia
• L Catterton