With $37 billion under management, L. Catterton is the largest consumer-focused private equity group in the world. Headquartered in Greenwich, Connecticut, they have an unrivalled track record in smart, strategic investing.
So, if you’re a rising consumer brand in need of a little more financial muscle, how do you get a ‘Yes’ from the best? Here are some of Catterton’s key investment criteria:
Emotion Matters
Investors tend to distrust words like ‘feel.’ But Catterton’s philosophy is rooted in understanding consumer emotions. As the company itself says, Catterton “invest in and build consumer businesses that are rooted in emotional connectivity and thereby in sticky relationships that we can scale.”
Timeless Trends
The PE giant operates in areas that have stood the test of time – fashion, beauty, wellness, food, and lifestyle. Sectors they know inside and out. They clearly understand, as Warren Buffett once put it[CR1.1], “risk comes from not knowing what you are doing.”
Lead. Don’t Follow
Rather than chasing trends, Catterton gets there first – proactively identifying consumer categories with long-term growth potential. By accurately anticipating these shifts in consumer behaviour, they identify the brands that will become the next sector leaders.
Spotting and Scaling
With 18 locations across five continents and over 200 staff, Catterton is perfectly placed to identify cross-border opportunities and scale brands internationally. A recent example is a partnership with UK restaurant group Dishoom, exploring growth in other global territories for the brand, including the US.
Talent First
Beyond capital, Catterton provides direct operational support. They place talent at the core of their investment thesis, ensuring portfolio companies have the right leadership and organisational structure to execute growth plans. As Drayton Founding Partner Rob Seery says, “All the best PE companies understand that identifying the right talent is the key component of scaling a business, Catterton completely gets that.”
Precise Parameters
L Catterton typically looks for scalable business models with clear paths to profitability, and companies in middle-market or high-growth stages, often with proven revenue streams. Notable successes include Birkenstock, Peloton, and KIKO Milano. Typical equity investments range between $10 million and $500 million in a single deal, depending on the fund and region.
If you’re a dynamic consumer brand focused on the future, Catterton might be just the place to go for that ‘Yes.’
info@lcatterton.com