L Capital, the private equity business of LVMH, American private equity firm Catterton, and French holding company Groupe Arnault have announced a merger to create L Catterton. The partnership would join Catterton’s North American and Latin American operations with L Capital’s European and Asian operations and real estate firms, creating what is expected to be the largest consumer-focused investment company in the world. They are on track to total $12 billion in assets by the end of the year. Under the terms of the merger, Catterton will own 60 percent of the new business, with Groupe Arnault and LVMH splitting the remaining 40 percent. The new conglomerate will have 17 offices on five continents allowing them to corner new markets and grow their portfolio. Currently, Catterton has a stake in big names like CorePower Yoga, P.F. Chang’s and Restoration Hardware, and privately holds over $5.5 billion in equity capital—partially aided by almost 20 years of investments from LVMH.
