Key Takeaways
- • L Catterton, a Greenwich, Connecticut-based consumer-focused private equity firm with about $40 billion in assets under management, has backed brands including Birkenstock, Peloton, Norwegian Cruise Line, ThirdLove, and Cholula, according to Inc.
- • CEO Scott Dahnke says the firm's most attractive startup categories are experiences, agentic commerce, and wellness, and that it invests anywhere from $10 million to $3 billion per deal.
- • The firm conducted 560,000 unique consumer surveys last year, about 45 times the University of Michigan's national consumer sentiment survey sample, and employs 8 full-time R&D staff among its 400 employees.
- • Recent deals referenced include the Hyrox buyback consortium (reported near $700 million), the Goodles sale to Barilla (reported $750 million), and the Thorne sale to Procter & Gamble ($3.8 billion).
- • Backed by LVMH's parent Groupe Arnault since 2016, when it took a 40 percent stake, L Catterton has pivoted from mall-brand investing toward upscale and experience-driven businesses.
Summary
L Catterton, a 37-year-old private equity firm headquartered in Greenwich, Connecticut, has built a substantial consumer investment franchise with approximately $40 billion in assets under management and hundreds of companies bought and sold. According to Inc., the firm's portfolio spans seemingly unrelated brands including Birkenstock, Peloton, Norwegian Cruise Line, ThirdLove, and Cholula. Since 2016, when Groupe Arnault, the holding company of Bernard Arnault and LVMH, acquired a 40 percent stake, the firm has been able to deploy capital globally and across deal sizes.
CEO Scott Dahnke, a former McKinsey consultant who joined Catterton as co-managing partner in 2003, describes a data-driven process. The firm conducted 560,000 unique consumer surveys last year, and Dahnke says it spends more on research and business development today than the firm's entire revenue when he joined. Eight of its 400 employees work full time on R&D. Dahnke identifies three priority investment buckets: experiences, including travel, leisure, and fitness; agentic commerce, meaning AI tools that shop on behalf of consumers, with recent backing of AI shopping platform Glance; and wellness, which he defines broadly to include longevity.
Deal activity cited in the article includes the return of Hyrox founders Christian Toetzke and Moritz Fürste, who joined a consortium led by L Catterton to regain a majority stake, a transaction reported at nearly $700 million. In the same period, the firm arranged the sale of Goodles to Barilla, reportedly for $750 million, and the sale of Thorne to Procter & Gamble for $3.8 billion. Earlier, Cholula was sold to McCormick for $800 million. The firm also launched a fund with Patricof Co in April that reportedly aims to raise $500 million, backed by more than 250 professional athletes.
Retail analyst Neil Saunders of GlobalData describes the firm as a house that builds and grows brands rather than one focused solely on extracting profit. Founders such as Good Culture's Jesse Merrill, who sold a majority stake in January, have credited the firm with preserving their company culture. Dahnke says the firm will invest as little as $10 million or as much as $3 billion, taking minority or majority stakes and both debt and equity positions.
CEO Scott Dahnke, a former McKinsey consultant who joined Catterton as co-managing partner in 2003, describes a data-driven process. The firm conducted 560,000 unique consumer surveys last year, and Dahnke says it spends more on research and business development today than the firm's entire revenue when he joined. Eight of its 400 employees work full time on R&D. Dahnke identifies three priority investment buckets: experiences, including travel, leisure, and fitness; agentic commerce, meaning AI tools that shop on behalf of consumers, with recent backing of AI shopping platform Glance; and wellness, which he defines broadly to include longevity.
Deal activity cited in the article includes the return of Hyrox founders Christian Toetzke and Moritz Fürste, who joined a consortium led by L Catterton to regain a majority stake, a transaction reported at nearly $700 million. In the same period, the firm arranged the sale of Goodles to Barilla, reportedly for $750 million, and the sale of Thorne to Procter & Gamble for $3.8 billion. Earlier, Cholula was sold to McCormick for $800 million. The firm also launched a fund with Patricof Co in April that reportedly aims to raise $500 million, backed by more than 250 professional athletes.
Retail analyst Neil Saunders of GlobalData describes the firm as a house that builds and grows brands rather than one focused solely on extracting profit. Founders such as Good Culture's Jesse Merrill, who sold a majority stake in January, have credited the firm with preserving their company culture. Dahnke says the firm will invest as little as $10 million or as much as $3 billion, taking minority or majority stakes and both debt and equity positions.
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