Though it was surely not top of mind for Bernard Arnault, one of the outcomes of today’s announcement that LVMH’s private equity arm L Capital is merging with Catterton will be that Arnault once again owns a business in the art market.
Nearly two decades ago, Arnault sought a stake in Sotheby’s. Then, eventually, he created the forerunner of Phillips when he tried to create third leading auction house with the help of Daniela Luxembourg and Simon de Pury.
Catterton led a $25m Series C round of fundraising for Artsy last March which allowed a senior partner in the firm to take a board seat.
Here’s the New York Times on the L Capital merger with Catterton:
They say the new company, to be named L Catterton, will be the largest consumer-focused investment firm in the world, with some $12 billion in assets after several funds are expected to close on raising money this year, according to a statement issued Tuesday. The merger should be completed in several months, pending regulatory and investor approvals.
J. Michael Chu and Scott A. Dahnke, the managing partners at Catterton, will become the global co-chief executives at L Catterton, with headquarters in Greenwich, Conn., and London. L Catterton’s partners will own 60 percent of the new firm, while LVMH and Groupe Arnault will jointly own the rest. The price and structure of the transaction were not disclosed. […]
L Capital was founded in 2001 with the mandate to invest in “affordable luxury” that was below the prices within LVMH’s brands.
[…] According to its website, L Capital still maintains investments in other companies. L Real Estate began four years later to seek out luxury retail properties, including Miami’s Design District.
Catterton was founded in 1989 and has grown to $5.5 billion in equity capital to deploy through leveraged buyouts and growth investments. Its brands penetrate the niche exercise market, counting Pure Barre, Peloton, CorePower Yoga, Flywheel and the workout clothing retailer Sweaty Betty among its investments. Catterton had invested in well-known American retailers such as P.F. Chang’s, Restoration Hardware, Baja Fresh, Build-A-Bear Workshop and First Watch, and it holds stakes in Noodles & Company and Chopt
LVMH’s Private Equity Arm to Merge With Catterton (The New York Times)
