L Capital, the private equity firm backed by luxury goods firm LVMH Moët Hennessy Louis Vuitton has launched its third fund, L Capital 3.

The fund has EUR400m at its disposal, well in excess of its original target of EUR350m. The fund will invest in mid-market European lifestyle brands and some retailers, focusing on those that are "aspirational, affordable and alternative."

"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," said Philippe Franchet, senior partner at L Capital Management.

The fund will acquire majority or minority interests either alone or with select co-investors with enterprise values of up to EUR400m. It plans to invest in a portfolio of 10-15 companies.

It will work in partnership with L Capital Asia, which has offices in Singapore, Mumbai and Shanghai. L Capital has so far invested in Gant, Sandro, Maje & Claudie Pierlot, Pepe Jeans & Hackett Group.