L Catterton debuts $315M Japan fund after closing $11B global round

What happened L Catterton, the consumer-focused private equity arm backed by French luxury powerhouse LVMH, has launched its first Japan-focused fund with $315 million (45 billion Japanese yen) in capital. This strategic move targets roughly 10 small to mid-sized companies across sectors such as beauty, food, and retail. The fund is backed by a mix of global and domestic investors, including insurers and pension funds. On May 28, the investment firm also announced the close of an $11 billion fundraising round, including more than $6.75 billion for its flagship buyout fund and additional capital for growth, credit, and region-specific funds across Europe, Japan, and China. With support from sovereign wealth funds, pension funds, endowments, family offices, and high-net-worth individuals, the firm now manages around $37 billion in assets globally — solidifying its position as the largest consumer-focused private equity firm in the world. The Jing Take This launch is LVMH’s first dedicated country-specific fund outside the U.S., highlighting Japan’s growing significance in consumer-focused investment. The fund’s inception comes amid a surge in private equity activity in Japan, driven by a weaker yen and an increase in M&A deals. According to press reports, private equity transactions in Japan reached $24.3 billion in the first six months of 2025 — already surpassing last year’s total and accounting for 4% of global deal volume. In China, L Catterton has raised 2 billion RMB ($278 million) across two domestic funds and invested at least 300 million RMB ($42 million) in five local firms, including kids’ care label Hi!papa and collagen-maker Trautec. More China-focused fundraising efforts under the LVMH-backed fund are reportedly in the pipeline. Strategic exit and global expansion On May 30, L Catterton announced plans to sell around 17.93 million shares of Birkenstock at $52.5 per share, which would raise over $941 million. The price represents a 3.3% discount from today's closing value, reflecting a cautious market outlook. L Catterton acquired Birkenstock in 2021 for approximately $4.8 billion. This partial exit suggests the fund is beginning to realize returns amid shifting consumer spending patterns and broader economic uncertainty. Globally, the firm continues to expand its consumer portfolio with deals involving Germany’s aforementioned Birkenstock, Italian beauty brand Kiko, and Chinese pet food label Enova. In Asia, recent moves include a $42 million round for India’s Farmley and the acquisition of Japan’s Kapital denim brand. With capital secured and competitive pressure easing in some markets, L Catterton is poised to accelerate its growth across Asia — especially in culturally driven luxury, DTC innovation, and sustainable materials. Additional research by William Zhou The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

L Catterton debuts $315M Japan fund after closing $11B global round

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Published June 06, 2025

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L Catterton debuts $315M Japan fund after closing $11B global round