LVMH closes its third investment fund with EUR400million

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pital Management, the investment vehicle of luxury giant LVMH Group, has recently announced the final closing of L Capital 3 FCPR with total commitments of EUR400 million, surpassing its initial target of 350 million of euros.

The Fund will acquire majority or minority equity interests, either alone or jointly with select co-investors, in mid-market companies with enterprise values of up to EUR400 million. It intends to invest in a portfolio of 10-15 companies.  L Capital's previous investments include Gant, Nutrition & Sante, Pepe Jeans and Princess Yachts.

"Changing demographics, consumer behavior and emerging new market segments in mature economies in Europe and the US, an increasing wealthy middle-class and emergence of important, powerful economies in China, India, South-East Asia and South America create significant demand for lifestyle brands," explained last week Philippe Franchet, Senior Partner at L Capital Management.

L Capital 3 will hence invest in mid-market European lifestyle brands and selective retail benefiting from global consumption trends. In particular, it will seek to invest primarily into lifestyle brands which have the characteristics of being Aspirational, Affordable and Alternative.

"Working in partnership with management teams and drawing upon the worldwide resources and expertise of the LVMH Group and L Capital Asia - a sister fund focused on Asia, with offices in Singapore, Mumbai and Shanghai - L Capital Management's goal is to develop world-class brands and retail businesses benefiting from growing global consumption trends," said Daniel Piette, Chairman at L Capital Management.

Capstone Partners acted as placement agent for the Fund, marketing in North America, Europe, Middle East and Asia. Despite the challenges presented by depressed capital markets and a negative sentiment on the European economy, Capstone completed the fundraise with investor interest well in excess of the Fund's target, attracting world-class investors from across the world.

SJ Berwin advised L Capital Management on the legal and tax structuring of the Fund (Legal: Arnaud David, Partner, assisted by Agnès Rossi, Marcela Moraru and Pierre-Charles Kaladji, associates - Tax: Sylvie Vansteenkiste and Raphaël Béra, Partners).

Image: Pepe Jeans