L Catterton to launch $600 Mn India-focused fund; IFC proposes $30 Mn

The International Finance Corporation (IFC) has proposed an equity investment of up to $30 million in L Catterton India Fund (Fund I), along with a co-investment envelope of up to $30 million under delegated authority. 

As per the disclosure, the fund is targeting $600 million in total commitments.

In March 2024, former Hindustan Unilever (HUL) CEO Sanjiv Mehta partnered with L Catterton to establish an investment vehicle focused on India.

Fund I is a private equity vehicle focused on providing growth capital to mid-market companies in India’s consumer sector. It plans to make 7 to 9 investments, with ticket sizes ranging from $25 million to $150 million per company.

The Fund will focus on businesses in four primary segments: food and beverage, consumer services (including healthcare), retail and restaurants, and consumer brands. The investment strategy centers on identifying companies positioned to scale in response to consumer demand and economic growth in India.

The vehicle will be led by L Catterton’s executive chairman for India, Mehta, and partner Anjana Sasidharan, who heads India investments. They will work in coordination with the L Catterton Asia leadership team led by managing partner Scott Chen, who has held the position since 2019.

L Catterton’s India portfolio includes Sugar Cosmetics, Farmley, Drools, Impresario (owner of restaurant chain Social), and a minority stake in Jio Platforms.