AI Issue 6 2018

12 Acquisition International - Issue 6 2018 L Catterton is the largest and most global consumer-focused private equity firm in the world and has been building brand equity for close to 30 years. We profiled the firm as we look to find out more about the company’s extensive success. stablished in 1989, Greenwich, Connecticut-based Catterton was formed to invest exclusively in leading consumer brands. In January of 2016, Catterton partnered with LVMH and Groupe Arnault to create L Catterton, the largest and most global consumer- focused private equity firm in the world, with over $15 billion of equity capital across six fund strategies in 17 offices globally. Since its inception, the firm has made over 200 investments in leading consumer brands, achieving strong returns without high leverage. With over $15 billion dedicated to growing middle market companies and emerging high-growth enterprises, the company is the largest and most experienced consumer-focused private equity group in the world. L Catterton’s unique approach offers muchmore than financial capital. The firm provides deep operational expertise in the consumer sector, facilitating and accelerating strategic plans to foster growth by leveraging deep category insight, operational excellence and a broad thought partnership network. A crucial aspect of L Catterton’s success has been its unique investment strategy, which combines deep category research with insights gleaned from three decades of experience to uncover the most promising sectors within the consumer economy and the companies within those sectors that are poised for growth. “Our Investment thesis is to find innovative, well- positioned consumer companies that are poised for strong growth, and that have a distinctive advantage within their categories.” - Scott Dahnke, Global Co- CEO Theconsumer industry isa largeandattractivemarket with significant growth potential due to favourable demographic and behavioural trends. L Catterton focuses on identifying companies with differentiated concepts and outstanding management teams with plenty of whitespace opportunity. Keeping one eye on the future, L Catterton believes that long-term value can be created through a variety of strategic initiatives, including brand building, new product development, strategic alliances, entry into new channels and marketing, including specific digital capabilities. “We are business builders and apply our expertise to companies while staying true to the mission, culture Company: L Catterton Address: 599 West Putnam Avenue, Greenwich, Connecticut, 6830, USA Phone: 001 203 862 5461 Website: www.lcatterton.com Investing in the Future E 1806AI32 and entrepreneurial spirit of the companies we partner with.” - Michael Chu, Global Co-CEO Adaptable and versatile, the firm invests in all major consumer sectors including Food and Beverage, Retail and Restaurants, Consumer Products and Consumer Services. To help source investment opportunities, L Catterton conducts extensive research to better understand consumer behaviour and identify the most attractive categories with the strongest growth potential. “Backed by our extensive research, we believe that consumers are increasingly choosing to invest in experiences over tangible items, and the experience itself has become an integral part of the consumer acquisition process.” “Furthermore, the globalisation of media and technology, combined with increasingly permeable geographic borders, is driving rapid consumer growth on an unprecedented global scale. Simply put, there has never been a more exciting time to be a consumer investor.” - Scott Dahnke, Global Co- CEO L Catterton discussed with us several compelling consumer trends that are helping guide the firm’s focus: Health and Wellness : Led by Baby Boomers, massive shifts are taking place in consumer product segments as health and wellness become core differentiators in choice. L Catterton has found that health and wellness is not a fad and will continue to be a determinant in almost all consumer decisions, which is why it has committed a significant amount of capital towards health and wellness brands. To capitalise on this exciting trend, L Catterton has made several investments in the space including Core Power Yoga, the largest privately held chain of yoga studios in the U.S., Peloton, the technology-enabled, vertically integrated, at-home fitness provider of live and on-demand instructor-led classes, and Zarbee’s, the leading manufacturer in the U.S. of natural OTC medicines for a wide variety of common ailments as well as immunity boosting products. Authenticity of Brands : In today’s world of rapid change, globalisation, information overload and short attention spans, an increasing number of consumers are looking back to when life was simpler. That’s why L Catterton has invested in authentic brands such as R.M. Williams, and Australian brand established in 1932 by the legendary Reginald Murray Williams,