L Catterton says its new Impact Fund Platform plans to deliver both attractive risk-adjusted returns and significant progress against some of the world’s most pressing social and environmental challenges.
Tehmina Haider and Michael O’Leary were appointed as partners to lead the new platform. The company plans to work with what it describes as the next generation of mission-driven consumer companies, and use what it calls its demonstrated ability to build leading and category-defining brands.
The fund will focus on businesses that mitigate climate change, reduce waste, and preserve nature; eliminate disparities in health, wellness, and nutrition; and create a more inclusive economy by expanding access to the financial system and improving education and workforce development.
Scott Dahnke, global co-CEO of L Catterton, says: “As consumer-focused investors above all else, we have seen a revolution in consumer demand based on sustainability and impact. This is hitting a tipping point as younger generations lead a structural, long-term shift towards brands anchored on these values.”
He adds: “With our distinctive insights and operations-centric approach to value creation, we are poised to identify the most attractive investment opportunities amidst this shift and partner with strong companies in advantaged categories to accelerate growth.”
The private equity firm says it has seen how impact can drive economics at consumer companies today.
O’Leary says: “We now have the opportunity to make significant progress against some of our biggest social and environmental challenges by scaling this next generation of companies. The future of the consumer sector is increasingly sustainable, inclusive, and equitable, and we’re building L Catterton Impact to help lead that transformation.”
L Catterton and Financière Agache completed the acquisition of German footwear brand Birkenstock in May 2021.