PE player L Catterton buys 10% in Future Lifestyle, owner of Brand Factory, Central

L Catterton Asia, the Asian unit of the consumer‐focused private equity firm, will take a stake of around 10% in Future Lifestyle Fashions Ltd, the company that operates the Brand Factory and Central fashion stores in India.

The valuation or the amount invested was not revealed. However, Future Lifestyle Fashions has an equity market value of around Rs 81.5 bln or Rs 8,150 cr.

Besides ‘Central’ and ‘Brand Factory’ retail chains, the company also owns about 30 fashion brands including the India rights for Lee Cooper.

Kishore Biyani, the CEO of Future Group said the deal opens up avenues of global collaboration for the group.

“With L Catterton’s pedigree and fashion expertise, we will continue to be a trendsetter through our collective deep understanding of culture, style code, passion and aspirations of Indian consumers.”

Chairman and Managing Partner of L Catterton Asia, Ravi Thakran said the two companies have identified areas for expansion.

“The underpenetrated retail sector in India offers significant opportunity and we look forward to working alongside Mr. Biyani and the outstanding management team throughout this next phase of the Company’s growth.”

Future Lifestyle’s own brands contribute to approximately 40% of its total sales and are also sold via exclusive brand outlets, department stores and multi brand outlets. Out of this, 60% is contributed by six brands.

L Catterton Asia will acquire the stake via a mix of preferential allotment and secondary purchase of shares, the Indian company said.

With approximately $15 billion of equity capital across six fund strategies in 17 offices globally, L Catterton is one of the largest and most global consumer‐focused private equity firm in the world.

The Asia unit invests in select consumer lifestyle businesses that will benefit from growing discretionary consumption in Asian markets.

L Catterton Asia’s investments include Trendy International, Pepe Jeans, Gentle Monster, YG Entertainment, Impresario Entertainment & Hospitality and Sasseur — one the largest operators and developers of lifestyle‐focused outlet malls in China.

Since 1989, the firm has made over 200 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH and Groupe Arnault. It has offices in Singapore and Mauritius, with further regional advisory presence in Hong Kong, Mumbai, Shanghai and Sydney.