L Catterton's India Fund Marks First Close at USD 200 Mn The fund plans to invest in 7 to 9 companies, with average deal sizes ranging from USD 25 million to USD 150 million.
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L Catterton's India-focused consumer fund has completed its first close at USD 200 million.
The fund, named L Catterton India Fund, was launched last year by L Catterton Asia along with former Hindustan Unilever executive Sanjiv Mehta. It is aimed at backing mid-market consumer businesses in the country.
According to a report by the ET, the fund has set a target of raising USD 400 million, with a greenshoe option of an additional USD 200 million.
Commitments have come from the International Finance Corporation, a member of the World Bank Group, as well as clients of Kotak Private, the private banking and wealth management arm of Kotak Mahindra Bank, the fund said.
The investment strategy focuses on food and beverage ventures, consumer services in healthcare, and retail businesses, among other sectors.
The fund plans to invest in 7 to 9 companies, with average deal sizes ranging from USD 25 million to USD 150 million. Its first investment has been made in Farmley, a direct-to-consumer healthy snacking brand.
Sanjiv Mehta currently serves as executive chairman of L Catterton India, while Anjana Sasidharan and Vikram Kumaraswamy lead operations as co-heads.
L Catterton itself manages USD 37 billion in assets globally and has completed more than 275 investments since its inception in 1989. In India, it has previously invested in companies such as PVR, Drools, Sugar Cosmetics, FabIndia and Jio Platforms. The firm's commitment to the new fund will be capped at 19.9%.
The development comes a month after venture capital firm Atomic Capital announced the final close of its maiden fund at INR 400 crore. That fund is focused on early and growth stage opportunities in consumer technology and enabler businesses.
