Hennessy owner forms major investment group

LVMH, owner of Hennessy Cognac, has merged its private equity and real estate operations with Catterton, creating the world’s largest consumer investment firm.

Hennessy Cognac owner LVMH has formed the world’s largest consumer-focused private equity firm with Catterton

The new unit, called L Catterton, expects to have about US$12 billion in assets under management after raising funds.

The new partnership will combine US-based Catterton’s existing North American and Latin American private equity operations with LVMH and Groupe Arnault’s ­­– the family holding company of Bernard Arnault, CEO of LVMH – existing European and Asian private equity and real estate operations.

Under the terms of the agreement, L Catterton will be 60% owned by the partners of L Catterton and 40% jointly owned by LVMH and Groupe Arnault.

L Catterton will focus on consumer buyout and growth investments across North America, Europe, Asia and Latin America, in addition to prime commercial real estate globally.

Led by co-CEOs Michael Chu and Scott A. Dahnke, currently managing partners at Catterton, its headquarters will be in Greenwich, CT and London, with regional offices across Europe, Asia and Latin America.

“We are delighted to partner with Catterton and its team,” said Arnault. “L Catterton will provide investors with a unique value creation platform, bringing together our global network and industry expertise with Catterton’s long-standing operational approach to building value in consumer investments.”

LVMH has invested in Catterton’s funds since 1998. The transaction is expected to close early in 2016, subject to customary regulatory and certain investor approvals.