L Catterton hits first close on debut renminbi fund

L Catterton announced the first close through a statement in Chinese on its WeChat account. It did not specify the size, but local media put it at CNY 1bn. The firm declined to make any additional comments.

LPs include local government investment platforms and domestic and foreign corporates with backgrounds in areas like food and beverage and beauty and apparel. The fund is registered in Chengdu High-Tech Zone.

L Catterton, which has about USD 33bn in assets under management globally, is currently deploying its third Asian fund. In the past 12 months, it has invested in Chinese companies such as beverage brand Genki Forest, bubble tea chain Hey Tea, and pet food brand PureNatural.

The renminbi fund will focus on early-stage investments, typically entering earlier rounds than its US dollar counterpart. By moving earlier, L Catterton hopes to avoid valuation bubbles that have emerged around growth-stage assets in recent years, according to a source close to the situation. The local currency fund is also deemed useful when backing companies that want to list domestically.

The statement noted that the addition of the renminbi fund extends the firm's coverage to cover the entire investment lifecycle. Portfolio companies will receive the full range of post-investment services, including brand building, product R&D, sales channel expansion, recruitment, digital transformation, and strategic cooperation with other brands.

“We are optimistic about China’s consumer industry in the long term,” said Jing Li, who leads the new fund. “The establishment of our first renminbi-denominated fund reflects our commitment to cultivate more globally influential brands for China."

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• Topics
• Greater China
• GPs
• Renminbi fund
• Consumer
• Fundraising
• China
• L Catterton
• Fundraising