Ex-L Catterton Asia head Ravi Thakran launches SPAC

The vehicle, Aspirational Consumer Lifestyle Corp, plans to raise $225 million through the sale of 22.5 million units at a $10 apiece, according to a filing. Each unit comprises one ordinary share and one-third of one warrant. Each whole warrant can be converted into a class A ordinary share at a price of $11.50 per share. There is an overallotment option of up to 3.38 million units.

In keeping with standard practice for SPACs, the sponsor and founders have subscribed to class B shares for a nominal sum that will convert into a 20% stake in the entity on completion of the offering. In addition, the sponsor has agreed to pay $6.5 million for 4.33 million warrants. L Catterton has a minority interest in the sponsor.

Thakran (pictured) held senior positions within LVMH Group before founding L Capital Asia, a private equity unit of LVMH which merged with US-based Catterton in 2016. His fellow senior management team members have similar backgrounds. Mark Bedingham, previously regional managing director for Asia Pacific at Moët Hennessy, serves on the board of two L Catterton portfolio companies in Asia, while Lisa Myers spun out from L Catterton last year to form Clerisy, a consumer-focused PE firm.

Thakran ended his day-to-day involvement with L Catterton earlier this year – he is now chairman emeritus – and recently announced plans to launch a private equity firm targeting mid-market investments in Asia’s consumer sector. He wants to pursue a similar thesis to the one that defined L Capital Asia: investing in aspirational, affordable, and alternative mid-market brands.

The SPAC will look at largely the same space. It will concentrate on “businesses with premium brands that offer an aspirational lifestyle experience to consumers.” The prospectus stresses the importance of connections based on aspirational lifestyle messaging, given brands increasingly interface with consumers through digital content, online communities, and influencer-driven recommendations.

Once the SPAC identifies a target, a majority of investors must vote in favor of the transaction. On completion, they can exercise their warrants and purchase shares or redeem some or all their shares for cash. If there is no deal within 24 months of the offering, investors will get their money back.

Various Asia-based private equity executives have listed SPACs on US bourses as interest in these structures continues to rise globally. Only three in Asia have been sponsored by GPs: New Frontier Group used a SPAC to buy Chinese hospital operator United Family Healthcare from TPG Capital; CITIC Capital launched a structure to pursue opportunities tied to the Belt & Road Initiative; and Korea’s ACE Equity Partners is using a SPAC for IT infrastructure deals.

Separately, in June, Chinese co-working space operator Ucommune merged into a SPAC led by an individual who primarily invests in technology assets through her family office.

Meanwhile, Peter Kuo, a co-founding partner at Canyon Bridge Capital Partners – a GP that acquires global technology assets with a view to supporting China expansion – raised $115 million and Malacca Straits Acquisition – a SPAC backed by Hong Kong hedge fund Argyle Street Management (ASM) and executives from Elliot Management and K2 Venture Capital – raised $125 million.

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• Topics
• Consumer
• IPO
• Asia
• L Catterton