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LVMH-backed L Catterton, the new owner of Bicester Village is one of the world’s biggest retail investors

By:

Retail Reporter

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Luxury firms like LVMH have been hit by a slowdown in the last few months after poor growth in key market China and the cost-of-living crisis in Western countries
Luxury firms like LVMH have been hit by a slowdown in the last few months after poor growth in key market China and the cost-of-living crisis in Western countries

You may never have heard of LVMH-backed L Catterton, but you’ve probably bought one of their products.

With $34bn (£26.29) in assets under management, they are purportedly the largest consumer-focused private equity group in the world.

They are a majority owner in 52 companies – including Birkenstock and Ganni – and a minority owner in another 92 firms.

The American-born firm is led by co-CEOs J. Michael Chu and Scott Dahnke. Originally Catterton Partners, the fund merged with the family office of Bernard Arnault (LVMH’s founder) and LVMH in 2016 to create L Catterton.

Former US Secretary of the treasury under Nixon, William Simon, founded the company along with Chu and Frank Vest and in 1989.

LVMH own a 40 per cent stake in the company. The companies enjoy a “special relationship”, according to L Catterton, “with both organisations actively collaborating in areas such as consumer insights, brand strategies, retail expansion and economies of scale across the collective portfolio”.

In 2023, L Catterton invested $2.1bn (£1.62bn) in 17 consumer businesses globally, according to the company.

Luxury firms like LVMH have been hit by a slowdown in the last few months after poor growth in key market China and the cost-of-living crisis in Western countries. LVMH will release a trading update tomorrow.

Bicester Village

In a slightly convoluted chain of companies, L Catterton now owns a significant chunk of the world-famous outlet centre, Bicester Village.

Silver Bidco, a newly-formed Jersey-based vehicle of L Catterton, has bought Hammerson’s stake in Value Retail, the owner of Bicester Village.

Value Retail operates nine luxury and premium fashion outlet centres, including Oxfordshire’s Bicester Village. Other Value Retail locations include outlet centres outside of Barcelona, Brussels, Dublin, Frankfurt, Paris, Madrid, Milan, and Munich.

The deal will see Hammerson’s entire 42 per cent stake in Value Retail transferred to Silver Bidco.

L Catterton’s exact stake in Bicester Village is unclear.

The sale is expected to generate cash proceeds of £600m for Hammerson.