(Yicai Global) Nov. 1 -- L Catterton, a private equity firm under global luxury brand Louis Vuitton Moet Hennessy, has set up a Chinese yuan-denominated fund focused on the consumer industry after completing a CNY1 billion (USD137.6 million) initial financing.
The fund, which aims to raise CNY2 billion, will invest more than half of the money in early venture capital firms, with the rest going to growth companies, China Fund News reported yesterday. Chengdu Hi-Tech Industrial Development Zone will be the first project to be officially invested in by the fund.
Despite indications that the fund has already reached its minimum subscription target, it remains open to new and existing investors willing to increase their subscriptions. It usually takes about 12 months to 18 months for a fund to stop accepting investors.
As the world's second-largest commodity consumer, China has significant market scale advantages, said Marzak Li, head of the fund. With the upgrading of the consumer structure, L Catterton is bullish on the development of China's consumer industry in the long term, he added, noting that the establishment of the first yuan fund in China also suggests that the company will be able to cultivate more brands to seize the international market in the future.
L Catterton manages six funds on five continents, with a total asset under management of USD33 billion, according to the firm's website. It invested in Chinese companies including low-calorie, sugar-free flavored beverages maker Genki Forest, milk tea brand Hey Tea, natural pet food brand Pure Natural, and beauty company Marubi Holdings Group.
Editor: Futura Costaglione