US-based PE firm L Catterton marks first close of India-focused consumer fund at $200 million

L Catterton has raised $200 million (approximately Rs 1,763 crore) for its India-focused consumer fund, reaching the vehicle’s first close.

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The private equity firm is targeting a corpus of $400 million with an additional green-shoe option of $200 million, potentially taking the total to $600 million, according to media reports.

The fund, which was established in partnership with former Hindustan Unilever chief executive Sanjiv Mehta, is focused on providing growth capital to mid-market consumer businesses. Mehta serves as executive chairman of L Catterton India, while Anjana Sasidharan and Vikram Kumaraswamy co-head its India operations.

Early backers include the International Finance Corporation, the World Bank’s private-sector arm, and clients of Kotak Private, the wealth management division of Kotak Mahindra Bank. In a disclosure earlier this year, IFC had proposed a $30 million infusion in the fund, capped at 19.9% of the total commitments. L Catterton itself will also limit its commitment to below 20%.

The India fund will concentrate on food and beverage companies, consumer services in healthcare, retail and restaurants, as well as branded consumer products. It is expected to invest in seven to nine businesses, with typical ticket sizes ranging from $25 million to $150 million. So far, it has made a single investment, in healthy snack maker Farmley.

L Catterton, founded in 1989, manages about $37 billion globally across private equity, credit and real estate. The firm has invested in more than 275 companies worldwide, including consumer brands such as Peloton, Birkenstock and Restoration Hardware. In India, its portfolio spans pet food maker Drools, and beauty brand Sugar Cosmetics.

The fundraising comes amid heightened interest in India’s consumer market. Last month, Singapore-based Venturi Partners announced the first close of its second consumer-focused fund at $150 million, while Atomic Capital closed its maiden $48 million fund targeting consumer tech and enabler startups.