Wellness-Focused Investment Firm L Catterton Refocuses Its Attention On Asia

SINGAPORE — Private equity firm L Catterton is raising $1.25 billion for its third Asia-focused fund. Among other areas, the capital could be used to support the continent’s burgeoning wellness industry.

With a strong track record as a health and wellness specialist across all of its six fund platforms; North America, South America, Europe, Asia, Real Estate and Flagship Buyout, L Catterton has made a number of high-profile investments in the wellness industry — its most notable being Flywheel Sports, Sweaty Betty and Peloton.

In Asia, its current wellness-focused portfolio including athletic brand 2XU and sports and swimwear brand Seafolly is on the smaller side, however according to the firm’s website, one of its key target areas for the region moving forward will be beauty and wellness. This is a category it defines as covering; perfumes and cosmetics, beauty services, holistic care and fitness centers.

Aiming to invest between $50 million and $150 million in middle-market growth companies across Asia, the firm says it is seeking to partner with well-positioned and distinctive businesses, with a view to extend their product range and/or strengthen internal operations, develop their brand and/or expand their distribution network and initiate international expansion.

And as consumers continue to spend on wellness across Asia, L Catterton isn’t the only investment firm to have its eye on the market.

Last year, RRJ Capital, which has invested in a number of healthcare businesses, closed an Asian fund at $4.5 billion, while Private equity firm TPG is currently raising over $4 billion for what is its seventh Asia fund.

For L Catterton, having most recently invested in US brands JustFoodForDogs, the first-to-market retailer of small batch, home-cooked natural pet food and Rhone, the premier men’s activewear label, the firm continues to show its commitment to investing in wellness brands that are changing the consumer world.

The question is, can it extend its operating expertise and wellness category insight further afield, in order to drive fresh momentum in Asia’s wellness market?